FabSwingers.com forum: Inflation at its highest since September 2013

By *isandre OP TV/TS
over a year ago

Durham

Inflation now at 2.3% (maybe as much as 3%). Wage growth at 2.2%.

Brexit is starting to hit.

Brexit won't happen.

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By (user no longer on site)
over a year ago

Blimey, did we leave the EU in 2013 as well? It's happening

enjoy

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By *ercuryMan
over a year ago

Grantham

"Inflation now at 2.3% (maybe as much as 3%). Wage growth at 2.2%.

Brexit is starting to hit.

Brexit won't happen."

We all knew there would be a small rise in inflation. Both the BoE and the Treasury have predicted as such, and let's face it, when inflation has been running at virtually zero for months, then it can only go one way

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By *isandre OP TV/TS
over a year ago

Durham

Sky News Economics editor says

'When the Treasury tried to work out the impact of a Leave vote in its much-panned report ahead of the referendum, it notoriously forecast a recession that simply didn't happen.

It got it horrendously, embarrassingly wrong: in fact the economy has grown even faster after the vote, as consumers kept on spending.

But there were two forecasts they got right.

First, they said that the pound would fall sharply, by around 12-15%.

Second, that this would push up inflation - the annual rate at which prices across the economy are changing - by 2.3%-2.7% more than if the UK had voted to stay.

The pound did indeed depreciate considerably after the Leave vote - in fact, based on the latest figures, it is 13% weaker than before the vote (against a basket of currencies).

And now the Office for National Statistics has reported that inflation - as measured by the consumer price index - has risen to 2.3%.

This is the highest rate of change since late 2013, and is also the first time the measure has been above the Bank of England's target in that period.

There is little doubt that this was caused primarily by the fall in the pound (which in turn was caused by the referendum vote - indeed, it plummeted on referendum night itself).

Because the UK relies so heavily on imported goods (we have a trade deficit, remember?) it is particularly sensitive to changes in the currency.

When the pound rises, prices fall; and when the pound falls, prices rise.

That's what happened in 2008 when the pound fell amid the financial crisis; that ultimately pushed up inflation to around 5%. It's what's happening now.

Indeed, a glance at the costs manufacturers are paying for imported materials underlines that story.

In the three years up until June 2016, those prices were falling on a year-on-year basis.

They suddenly started to rise following the referendum.

Over the past three months the annual rate hit 18.8% - the highest level since 2008.

That would imply inflation has even further to rise.

Indeed, as we reported a couple of weeks ago, timely measures of prices (collected from the internet) suggest prices might already be rising by more than 3%.

Now, on the one hand, inflation at or around target is no cause for panic. Indeed, a little bit of inflation is actually quite a good thing.

But the concern is that, as happened back in 2008, rising prices won't be matched by rising wages.

In fact, according to the ONS, wage inflation dropped down to 2.3% in the three months to January (2.2% when you include bonuses).

When inflation rises faster than earnings, that means that across the economy we are facing a fall in living standards.

Such things are surprisingly rare.

Indeed, the squeeze we saw during the crisis was the biggest and longest since the Victorian era.

And in a sense, much of the frustration many people have felt in recent years has owed itself to that: their wages simply not keeping pace with the cost of living.

So the big worry is that Brexit looks like causing precisely the same thing all over again.

Indeed, if the most recent figures are anything to go by, real wages are probably already falling.

Now, on the bright side, there is less reason to suspect that this time around companies will keep wages low for a long period of time.

Then again, such predictions are a mug's game.

What we know is that right now prices are rising at around the same rate as wages, and that prices are almost certainly heading higher. A short-term squeeze is almost inevitable.

Some will dispute whether this is really down to the referendum, and indeed there are plenty of things one can quibble about in economics (I, for one, thought those predictions of economic apocalypse ahead of the vote were way over the top).

However, in this case the evidence seems pretty straightforward: the Brexit effect is now taking hold.

So when you see prices rising in the shops, or online, or in the petrol forecourt, there's your explanation: in large part it's down to the referendum vote last year.

For some that will be a small price to pay for our prospective independence from the EU.

As the impact takes its toll over the coming months, others might take a different view.'

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By *ercuryMan
over a year ago

Grantham

The inflation rate in the USA is 2.7%.....are they having Brexit as well?

Oil prices have risen causing worldwide inflation, and as Mark Carney stated earlier "don't read too much into one month's figures".

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By *isandre OP TV/TS
over a year ago

Durham

Consumer prices in the United States increased 2.7 percent year-on-year in February of 2017, following a 2.5 percent rise in January and in line with market expectations. It was the highest inflation rate since March of 2012, boosted by a rise in gasoline prices.

Wages in the United States increased 4.47 percent in January of 2017 over the same month in the previous year.

'are they having Brexit as well?'

Clearly not.

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By *andS66Couple
over a year ago

Derby

This is from the ONS Document "RPI:Percentage change over 12 months"

Within 2 years of us joining the EEC (1973) inflation had hit almost 25%. 8 years later it was still at 12%. Between 1973 and 1998 - 25 years - inflation was below today's level just ONCE. In the last twenty years, inflation has been below today's level on just 6 years.

In the time that we have been members of the EEC /EU, inflation has been below today's level on just 7 years out of 45 -

Year Inflation

2016 1.8%

2015 1.0%

2014 2.4%

2013 3.0%

2012 3.2%

2011 5.2%

2010 4.6%

2009 -0.5%

2008 4.0%

2007 4.3%

2006 3.2%

2005 2.8%

2004 3.0%

2003 2.9%

2002 1.7%

2001 1.8%

2000 3.0%

1999 1.5%

1998 3.4%

1997 3.1%

1996 2.4%

1995 3.5%

1994 2.4%

1993 1.6%

1992 3.7%

1991 5.9%

1990 9.5%

1989 7.8%

1988 4.9%

1987 4.2%

1986 3.4%

1985 6.1%

1984 5.0%

1983 4.6%

1982 8.6%

1981 11.9%

1980 18.0%

1979 13.4%

1978 8.3%

1977 15.8%

1976 16.5%

1975 24.2%

1974 16.0%

1973 9.2%

1972 7.1%

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By *isandre OP TV/TS
over a year ago

Durham

In the time that we have been members of the EEC /EU, inflation has been below today's level on just 7 years out of 45 -

So?

Your wording is interesting

'Within 2 years of us joining the EEC (1973) inflation had hit almost 25%. 8 years later it was still at 12%.'

Is it your belief it was the EEC and our joining it that was responsible for this?

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By (user no longer on site)
over a year ago

Yes shock horror petrol is going up

oh wait a minuet was it not over £1.30 a litre a while back

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By (user no longer on site)
over a year ago

In the time that we have been members of the EEC /EU, inflation has been below today's level on just 7 years out of 45 -

So?

Your wording is interesting

'Within 2 years of us joining the EEC (1973) inflation had hit almost 25%. 8 years later it was still at 12%.'

Is it your belief it was the EEC and our joining it that was responsible for this?"
By 1973, inflation in the UK was accelerating to over 20%. This was due to:

Rising wages, partly due to strength of unions

Inflationary budget of 1972.

Growth in credit and consumer spending

Oil price shock of 1973, leading to 70% increase in oil prices.

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By (user no longer on site)
over a year ago

Massive Inflation was inevitable the day we bailed out the banks, we were never going to be able to repay that debt without inflating our way out of it, all we can hope for now is that wage growth follows inflation and keeps us working class bums in some sort of equilibrium

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By (user no longer on site)
over a year ago

"Massive Inflation was inevitable the day we bailed out the banks, we were never going to be able to repay that debt without inflating our way out of it, all we can hope for now is that wage growth follows inflation and keeps us working class bums in some sort of equilibrium

"
I decided to put up the daily rate i charge by 10% this year.As everything is about to go up.

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By (user no longer on site)
over a year ago

"The inflation rate in the USA is 2.7%.....are they having Brexit as well?

Oil prices have risen causing worldwide inflation, and as Mark Carney stated earlier "don't read too much into one month's figures"."
except oil prices have actually fallen around about $51 a barrel

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By *ercuryMan
over a year ago

Grantham

"The inflation rate in the USA is 2.7%.....are they having Brexit as well?

Oil prices have risen causing worldwide inflation, and as Mark Carney stated earlier "don't read too much into one month's figures". except oil prices have actually fallen around about $51 a barrel "

From a low of $29 in January 2016, they peaked at $54 in December 2016. Now running at about $47 per barrel.

Oil is used in many commodities, as well as for fuel and heating. Factory gate prices are now beginning to reflect on the higher oil prices from the back end of 2016.

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By (user no longer on site)
over a year ago

I decided to put up the daily rate i charge by 10% this year.As everything is about to go up.

"
.

I am also hoping for better wage rises this year having seen no wage increase at all since 2011

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By (user no longer on site)
over a year ago

And on the back of these figures what happens? Sterling rises. Inflation falls. Its nothing

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By (user no longer on site)
over a year ago

Kids of today have it lucky

1984 inflation 5%

if I can recall my mortgage was paid back at 17%

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By *isandre OP TV/TS
over a year ago

Durham

Kids of today, lucky and mortgage in the same sentence. Good achievement that.

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By *isandre OP TV/TS
over a year ago

Durham

"And on the back of these figures what happens? Sterling rises. Inflation falls. Its nothing"

What on earth are you talking about?

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By (user no longer on site)
over a year ago

"Kids of today have it lucky

1984 inflation 5%

if I can recall my mortgage was paid back at 17%"
but you could afford to buy a property and afford the repayments not true for many kids today.Although life today is better than the 70s and 80s.

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By (user no longer on site)
over a year ago

"Inflation now at 2.3% (maybe as much as 3%). Wage growth at 2.2%.

Brexit is starting to hit.

Brexit won't happen."

Brexit wont happen !!!

is this a comedy post, or just fantasy

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By (user no longer on site)
over a year ago

"And on the back of these figures what happens? Sterling rises. Inflation falls. Its nothing

What on earth are you talking about?"

The pound has risen today in the expectation that the interest rate will rise to hold back inflation. When the interest rate goes up sterling will rise. The Bank of England made a mistake dropping interest rates last year, there was no need for it.

By the way, did we leave the EU in 2013?

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By (user no longer on site)
over a year ago

"Kids of today have it lucky

1984 inflation 5%

if I can recall my mortgage was paid back at 17% but you could afford to buy a property and afford the repayments not true for many kids today.Although life today is better than the 70s and 80s.

Why is it?

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By *andS66Couple
over a year ago

Derby

In the time that we have been members of the EEC /EU, inflation has been below today's level on just 7 years out of 45 -

So?

Your wording is interesting

'Within 2 years of us joining the EEC (1973) inflation had hit almost 25%. 8 years later it was still at 12%.'

Is it your belief it was the EEC and our joining it that was responsible for this?"

Is it your belief that Brexit is responsible for inflation to the mind boggingly giddy heights of 2.3% now?

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By (user no longer on site)
over a year ago

"Kids of today have it lucky

1984 inflation 5%

if I can recall my mortgage was paid back at 17% but you could afford to buy a property and afford the repayments not true for many kids today.Although life today is better than the 70s and 80s.

Why is it?"
That would be a really long list from me followed by a long list from you no doubt.I guess your age and experiences of the 70s and 80s will differ from mine and where you place value.To be fair its subjective.The past is however always viewd through the lens of the present.

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By *andS66Couple
over a year ago

Derby

In the time that we have been members of the EEC /EU, inflation has been below today's level on just 7 years out of 45 -

So?

Your wording is interesting

'Within 2 years of us joining the EEC (1973) inflation had hit almost 25%. 8 years later it was still at 12%.'

Is it your belief it was the EEC and our joining it that was responsible for this? By 1973, inflation in the UK was accelerating to over 20%. This was due to:

Rising wages, partly due to strength of unions

Inflationary budget of 1972.

Growth in credit and consumer spending

Oil price shock of 1973, leading to 70% increase in oil prices."

Did you not read the figures that were quoted in the ONS report? Inflation wasn't over 20% by 1973!

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By (user no longer on site)
over a year ago

"Kids of today have it lucky

1984 inflation 5%

if I can recall my mortgage was paid back at 17% but you could afford to buy a property and afford the repayments not true for many kids today.Although life today is better than the 70s and 80s.

Why is it?That would be a really long list from me followed by a long list from you no doubt.I guess your age and experiences of the 70s and 80s will differ from mine and where you place value.To be fair its subjective.The past is however always viewd through the lens of the present."

No long list, just that they were the days when there was a pub on every corner and people actually went out and socialised

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By (user no longer on site)
over a year ago

"Kids of today have it lucky

1984 inflation 5%

if I can recall my mortgage was paid back at 17% but you could afford to buy a property and afford the repayments not true for many kids today.Although life today is better than the 70s and 80s.

No long list, just that they were the days when there was a pub on every corner and people actually went out and socialised"
That was when you were young your being nostalgic.Society changes and evolves.Before the internet and social media the world was a smaller place and you didnt have Fabs .People still socialise in pubs and in a more global way.

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By (user no longer on site)
over a year ago

In the time that we have been members of the EEC /EU, inflation has been below today's level on just 7 years out of 45 -

So?

Your wording is interesting

'Within 2 years of us joining the EEC (1973) inflation had hit almost 25%. 8 years later it was still at 12%.'

Is it your belief it was the EEC and our joining it that was responsible for this? By 1973, inflation in the UK was accelerating to over 20%. This was due to:

Rising wages, partly due to strength of unions

Inflationary budget of 1972.

Growth in credit and consumer spending

Oil price shock of 1973, leading to 70% increase in oil prices.

Did you not read the figures that were quoted in the ONS report? Inflation wasn't over 20% by 1973!"
Yep my mistake.75 it is.

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By *isandre OP TV/TS
over a year ago

Durham

"And on the back of these figures what happens? Sterling rises. Inflation falls. Its nothing

What on earth are you talking about?

By the way, did we leave the EU in 2013?"

No, we didn't leave the EU in 2013. What has that got to do with anything?

So when we were saying the sudden drop in the pound was bad news for imports your response was that it was good news for exports. As true as that was, at least while we have our excellent EU trade deals in place, given that we import much more than we export your argument suggesting equivalence was massively flawed, but you never acknowledge that.

For the record, I do think one of the benefits of Brexit will hopefully be a rebalancing of the economy - shit, brutal way to do it, silver lining in a big black cloud, but a long term opportunity never the less. We probably won't make the most of it due to the massively negative impact this incompetent governments policies and brexit negotiations fiasco will have on science, education, trade etc.

Now it goes the other way and a strengthening of the pound you decide is a good thing. No mention of the impact on exports all of a sudden?

Before you think to turn this around on me and say that I'm simply the other side of the same coin, inflation isn't the only variable here.

If Sterling picks up a little because of interest rates then this is not good. Higher interest rates are good for savers and investers, but they are shit for borrowers. The recent predicted recession - overblown disgracefully by Osborne though the BOE did have to step in with some significant measures - didn't materialise mainly because consumer spending went up rather than tanked. That has staved off a lot of unwelcome measures by businesses. But now, we have price rises finding their way into the system, exceeding wage growth and the recent consumer spending, when financed from savings means the interest rate rise is less beneficial for savers, but when it was fuelled by increased debt, people are going to get hammered. Add to that mortgages will go up, in an already disastrous housing market which has been and is being totally neglected by this governement and the consumer will stop spending.

THAT fucks the economy. It's going to take a couple of years to properly filter through at which point the country will say, re Brexit, staring at a fragmenting Union, the prospect of no trade deals and WTO tariffs, save us from ourselves.

Two years may see an opposition emerge that the public can rally round.

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By (user no longer on site)
over a year ago

"Kids of today have it lucky

1984 inflation 5%

if I can recall my mortgage was paid back at 17% but you could afford to buy a property and afford the repayments not true for many kids today.Although life today is better than the 70s and 80s.

why is life better today than the 70s and 80s

the 70's was an amazing era, amazing music, the beginnings of punk rock, the clash, pistols and that amazing band you are not allowed to mention on this forum, "the strangl*rs.

A time when kids wend out to play early morning and returned home for tea at night,

first loves, teenage kids,

yeh life wasn't good, it was brilliant

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By (user no longer on site)
over a year ago

"Kids of today have it lucky

1984 inflation 5%

if I can recall my mortgage was paid back at 17% but you could afford to buy a property and afford the repayments not true for many kids today.Although life today is better than the 70s and 80s.

No long list, just that they were the days when there was a pub on every corner and people actually went out and socialisedThat was when you were young your being nostalgic.Society changes and evolves.Before the internet and social media the world was a smaller place and you didnt have Fabs .People still socialise in pubs and in a more global way.

Crap. What do you think I am, half dead now and no longer a part of society? Before the internet the world was a bigger place you mean and people actually went out and lived it

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By *isandre OP TV/TS
over a year ago

Durham

why is life better today than the 70s and 80s

the 70's was an amazing era, amazing music, the beginnings of punk rock, the clash, pistols and that amazing band you are not allowed to mention on this forum, "the strangl*rs.

A time when kids wend out to play early morning and returned home for tea at night,

first loves, teenage kids,

yeh life wasn't good, it was brilliant"

By your own subjective measure. By most objective measures today is much better than the 1970's.

Although average annual real earnings are currently back to 2001 levels and, it seems, heading further in the wrong direction due to Brexit.

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By (user no longer on site)
over a year ago

why is life better today than the 70s and 80s

the 70's was an amazing era, amazing music, the beginnings of punk rock, the clash, pistols and that amazing band you are not allowed to mention on this forum, "the strangl*rs.

A time when kids wend out to play early morning and returned home for tea at night,

first loves, teenage kids,

yeh life wasn't good, it was brilliant

By your own subjective measure. By most objective measures today is much better than the 1970's.

Although average annual real earnings are currently back to 2001 levels and, it seems, heading further in the wrong direction due to Brexit.

My biggest regret is not being old enough to enjoy the 60's though out of my hands

I was born in 60's and life has turned out very well for me, job opportunities late 70's early 80's were excellent for kids, you could choose between 3 or 4 different apprenticeships, steered me in direction for a low 6 figure salary with final salary pension, not many final salary pensions going around today

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By (user no longer on site)
over a year ago

"Kids of today have it lucky

1984 inflation 5%

if I can recall my mortgage was paid back at 17% but you could afford to buy a property and afford the repayments not true for many kids today.Although life today is better than the 70s and 80s.

Crap. What do you think I am, half dead now and no longer a part of society? Before the internet the world was a bigger place you mean and people actually went out and lived it"
I remember my grandfather telling me if wanted to find out how to do something like plumbing or electrics or repairs he went down the pub and asked. His local was the google of the 30s and 40s for him..

Those local pubs are all but gone.

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By (user no longer on site)
over a year ago

Yes, his is the brexit effect, not sure what they smoke to believe in their paradise.

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By *isandre OP TV/TS
over a year ago

Durham

I take the point about job opportunities, but surely part of the reason you have been able to do so well is that the advances over the years since in science and society created a healthier, better educated population, more integrated due to better infrastructure, communication links etc which you could take advantage of and apply your own talents?

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By (user no longer on site)
over a year ago

"I take the point about job opportunities, but surely part of the reason you have been able to do so well is that the advances over the years since in science and society created a healthier, better educated population, more integrated due to better infrastructure, communication links etc which you could take advantage of and apply your own talents? "

possibly, but I virtually died early 82, heart stopped for a period of time on op table after serious RTA, the NHS saved my life, I trusted the NHS more then than I do now.

guess no matter when you were born, you are in charge of your own destiny

still cant understand why sky tv, gaming & mobile phones are more important to people than private health & pension

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By (user no longer on site)
over a year ago

Science has created better treatments not healthier people. Apparently we have an obesity epedemic because people just sit around with their social media and in front of their giant tv's watching shite and waiting for their social highlight of the week which is a walk round Asda. And as for education? Are you kidding? We have gone backwards in so many ways not forwards. And I agree with the poster above, I would have loved to have been a young guy in the 60s

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By (user no longer on site)
over a year ago

why is life better today than the 70s and 80s

the 70's was an amazing era, amazing music, the beginnings of punk rock, the clash, pistols and that amazing band you are not allowed to mention on this forum, "the strangl*rs.

A time when kids wend out to play early morning and returned home for tea at night,

first loves, teenage kids,

yeh life wasn't good, it was brilliant

By your own subjective measure. By most objective measures today is much better than the 1970's.

Although average annual real earnings are currently back to 2001 levels and, it seems, heading further in the wrong direction due to Brexit.

So being in the EU has been good for us then eh

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By (user no longer on site)
over a year ago

why is life better today than the 70s and 80s

the 70's was an amazing era, amazing music, the beginnings of punk rock, the clash, pistols and that amazing band you are not allowed to mention on this forum, "the strangl*rs.

A time when kids wend out to play early morning and returned home for tea at night,

first loves, teenage kids,

yeh life wasn't good, it was brilliant

By your own subjective measure. By most objective measures today is much better than the 1970's.

Although average annual real earnings are currently back to 2001 levels and, it seems, heading further in the wrong direction due to Brexit.

My average earnings aren't

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By *isandre OP TV/TS
over a year ago

Durham

why is life better today than the 70s and 80s

the 70's was an amazing era, amazing music, the beginnings of punk rock, the clash, pistols and that amazing band you are not allowed to mention on this forum, "the strangl*rs.

A time when kids wend out to play early morning and returned home for tea at night,

first loves, teenage kids,

yeh life wasn't good, it was brilliant

By your own subjective measure. By most objective measures today is much better than the 1970's.

Although average annual real earnings are currently back to 2001 levels and, it seems, heading further in the wrong direction due to Brexit.

So being in the EU has been good for us then eh

Our own governments are responsible, not the EU and it's mythical straight bananas.

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By (user no longer on site)
over a year ago

why is life better today than the 70s and 80s

the 70's was an amazing era, amazing music, the beginnings of punk rock, the clash, pistols and that amazing band you are not allowed to mention on this forum, "the strangl*rs.

A time when kids wend out to play early morning and returned home for tea at night,

first loves, teenage kids,

yeh life wasn't good, it was brilliant

By your own subjective measure. By most objective measures today is much better than the 1970's.

Although average annual real earnings are currently back to 2001 levels and, it seems, heading further in the wrong direction due to Brexit.

So being in the EU has been good for us then eh

Our own governments are responsible, not the EU and it's mythical straight bananas.

So when things are good we can thank the EU. When it's shit it's the government and/ or Brexit. Got it, thanks

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By *isandre OP TV/TS
over a year ago

Durham

The EU have provided a good framework on the whole, not using that properly or not engaging fully to improve the framework where necessary, is down to us.

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By *isandre OP TV/TS
over a year ago

Durham

why is life better today than the 70s and 80s

the 70's was an amazing era, amazing music, the beginnings of punk rock, the clash, pistols and that amazing band you are not allowed to mention on this forum, "the strangl*rs.

A time when kids wend out to play early morning and returned home for tea at night,

first loves, teenage kids,

yeh life wasn't good, it was brilliant

By your own subjective measure. By most objective measures today is much better than the 1970's.

Although average annual real earnings are currently back to 2001 levels and, it seems, heading further in the wrong direction due to Brexit.

So being in the EU has been good for us then eh

Our own governments are responsible, not the EU and it's mythical straight bananas.

So when things are good we can thank the EU. When it's shit it's the government and/ or Brexit. Got it, thanks

Presumably you blame the EU for the bedroom tax, the lack of affordable housing, the lack of regulation on the banks, the poll tax, the Iraq War .....

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By (user no longer on site)
over a year ago

In the time that we have been members of the EEC /EU, inflation has been below today's level on just 7 years out of 45 -

So?

Your wording is interesting

'Within 2 years of us joining the EEC (1973) inflation had hit almost 25%. 8 years later it was still at 12%.'

Is it your belief it was the EEC and our joining it that was responsible for this? By 1973, inflation in the UK was accelerating to over 20%. This was due to:

Rising wages, partly due to strength of unions

Inflationary budget of 1972.

Growth in credit and consumer spending

Oil price shock of 1973, leading to 70% increase in oil prices."
.

I just googled that and its kinda crazy oil went from 4 dollars a barrel in 1974 to wait for it!

40 dollars a barrel in 1979.

So 40 years ago it was more expensive than it was last month.

Thats nuts

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By *ercuryMan
over a year ago

Grantham

In the time that we have been members of the EEC /EU, inflation has been below today's level on just 7 years out of 45 -

So?

Your wording is interesting

'Within 2 years of us joining the EEC (1973) inflation had hit almost 25%. 8 years later it was still at 12%.'

Is it your belief it was the EEC and our joining it that was responsible for this? By 1973, inflation in the UK was accelerating to over 20%. This was due to:

Rising wages, partly due to strength of unions

Inflationary budget of 1972.

Growth in credit and consumer spending

Oil price shock of 1973, leading to 70% increase in oil prices..

I just googled that and its kinda crazy oil went from 4 dollars a barrel in 1974 to wait for it!

40 dollars a barrel in 1979.

So 40 years ago it was more expensive than it was last month.

Thats nuts

That's OPEC for you! Any other price fixing cartel would be illegal.

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By (user no longer on site)
over a year ago

Also im not great at maths but i think thats more like a 400% increase than a 70% increase

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By *abioMan
over a year ago

Newcastle and Gateshead

Is it your belief that Brexit is responsible for inflation to the mind boggingly giddy heights of 2.3% now?"

you can believe is not the answer within itself, but you can absolutely argue for and economist standpoint it was the spark that lead to the chain reaction.....

brexit vote caused a devaluation of the pound... which then caused prices to rise because most things are priced in US Dollars....

so therefore things that are inflation sensitive have gone up... fuel for example, foodstuffs being another, electronic goods ect ect.....

all of that is passed onto the customer.... hence less money in pocket to buy things, that higher inflation...

problem then because higher inflation can lead to higher wage rises to try and keep up with inflation....

case in point... if you are in the public sector... and you get a 1% wage increase (remember, we are all in austerity together apparently) but you see inflation is 2.5%, then in real terms you are now worse off than you were.....

so you can keep wage increases in check whilst inflation is super low.... but once it isn't then it can become much more of a vicoius circle as every part of the economy is trying to keep up with the other....

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By *mmabluTV/TS
over a year ago

upton wirral

"Inflation now at 2.3% (maybe as much as 3%). Wage growth at 2.2%.

Brexit is starting to hit.

Brexit won't happen."

Here we go again,it could have happened anyway,the price of oil has nothing to do with Brexit

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By *andS66Couple
over a year ago

Derby

"The EU have provided a good framework on the whole, not using that properly or not engaging fully to improve the framework where necessary, is down to us."

Where have they provided not such a good framework?

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By *mmabluTV/TS
over a year ago

upton wirral

"The EU have provided a good framework on the whole, not using that properly or not engaging fully to improve the framework where necessary, is down to us."
Bollocks

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By *mmabluTV/TS
over a year ago

upton wirral

In the time that we have been members of the EEC /EU, inflation has been below today's level on just 7 years out of 45 -

So?

Your wording is interesting

'Within 2 years of us joining the EEC (1973) inflation had hit almost 25%. 8 years later it was still at 12%.'

Is it your belief it was the EEC and our joining it that was responsible for this?"
Maybe it proves that great change causes inflation but it is temporary.I do believe that the current inflation is largely down to Brexit but it is and will be temporary and no need to make a big point of it.

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By *andS66Couple
over a year ago

Derby

Is it your belief that Brexit is responsible for inflation to the mind boggingly giddy heights of 2.3% now?

you can believe is not the answer within itself, but you can absolutely argue for and economist standpoint it was the spark that lead to the chain reaction.....

brexit vote caused a devaluation of the pound... which then caused prices to rise because most things are priced in US Dollars....

so therefore things that are inflation sensitive have gone up... fuel for example, foodstuffs being another, electronic goods ect ect.....

all of that is passed onto the customer.... hence less money in pocket to buy things, that higher inflation...

problem then because higher inflation can lead to higher wage rises to try and keep up with inflation....

What were the IMF, the OECD, the treasury, the BoE, etc saying about the value of the pound in 2016 just before the referendum?

If you can't be bothered to search and find out, they were saying it was up to 20% overvalued.....

In other words, Brexit or not, the pound was due to drop in value at some point.

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By (user no longer on site)
over a year ago

"The EU have provided a good framework on the whole, not using that properly or not engaging fully to improve the framework where necessary, is down to us."

As I said. In your opinion anything good is down the the EU naything bad Brexit

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By (user no longer on site)
over a year ago

why is life better today than the 70s and 80s

the 70's was an amazing era, amazing music, the beginnings of punk rock, the clash, pistols and that amazing band you are not allowed to mention on this forum, "the strangl*rs.

A time when kids wend out to play early morning and returned home for tea at night,

first loves, teenage kids,

yeh life wasn't good, it was brilliant

By your own subjective measure. By most objective measures today is much better than the 1970's.

Although average annual real earnings are currently back to 2001 levels and, it seems, heading further in the wrong direction due to Brexit.

So being in the EU has been good for us then eh

Our own governments are responsible, not the EU and it's mythical straight bananas.

So when things are good we can thank the EU. When it's shit it's the government and/ or Brexit. Got it, thanks

Presumably you blame the EU for the bedroom tax, the lack of affordable housing, the lack of regulation on the banks, the poll tax, the Iraq War ....."

Nope, why would I? Most of it was Blair's fault in his quest to be the first President of Europe. Poll Tax? Fuck me you had to go back some time to dig that one out

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By *abioMan
over a year ago

Newcastle and Gateshead

If you can't be bothered to search and find out, they were saying it was up to 20% overvalued.....

In other words, Brexit or not, the pound was due to drop in value at some point."

you can scream at me as much as you like.... but lets all have a look at the office of national statistics report that came with the inflation figures....

lets see if you "bothered" to read it... (see... 2 of us can be condescending as well!!! )

"the main upward effect on inflation came from motor fuels as prices rose by 1.2% between January and February, reflecting recent increases in global oil prices as well as the pound’s weakness since last June’s referendum. The weaker pound makes imports to the UK, including oil, more expensive."

"another factor in February’s stronger inflation – the highest rate since September 2013 – was pricier laptops and tablets. They increased by 2.3% between January and February, having fallen by 5.1% a year ago."

"Food prices rose in annual terms for the first time in more than two-and-a-half years with a wide range of items contributing to the pick-up. There were particularly large price rises for certain vegetables, consistent with reports of poor growing conditions in southern Europe, For example, the price of an iceberg lettuce increased by 67.2% between January and February."

i don't doubt your intelligence on issues, so please don't doubt mine!

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By *anes HubbyCouple
over a year ago

Babbacombe Torquay

Food inflation still isn't being calculated truthfully, when reality hits home people will be shitting bricks......

Britain has enjoyed low food prices for years, its time the public woke up