Inflation

[Captain Slog]

4 hours ago, frankblack said:

 

True - I don't really get much time to get to more than one big shop.  Haven't really shopped at the Gyle for some time.

 

Lidl opening will be good competition and means you can just park and go to both.

 

I also heard that Waitrose are potentially opening in Corstorphine - but you won't save much going there!

Is Lidl opening at the Gyle, Id be as well doing my food shopping there after work on a work day if there is

 

[frankblack]

6 hours ago, Captain Slog said:

Is Lidl opening at the Gyle, Id be as well doing my food shopping there after work on a work day if there is

 

 

Not that I know of but it is opening soon where PC World was in Glasgow Road.

[Captain Slog]

40 minutes ago, frankblack said:

 

Not that I know of but it is opening soon where PC World was in Glasgow Road.

I gotcha.  You know I went past Corstorphine for the first time last week since lockdown, used to be some lovely little shops there - just seems so bleak now.

 

Reminds me of when I went through Bathgate ten years ago when my Dad died, hadnt seen it since i grew up in Uphall in the eighties.  Just seemed to be cash generators and charity shops compared to some nice we shops forty years ago,

[Jambo-Jimbo]

OFGEM has announced that it is to review the energy price cap every 3 months from October, instead of the current 6 monthly review.

They say that by doing it this way there shouldn't be large increases such as we seen in April, however this now means that your gas & electric could rise 4 times a year, albeit in smaller chunks.

 

Of course there is always the chance that prices might fall, which would mean a reduction being passed on quicker..........aye ok.

https://www.bbc.co.uk/news/business-61462584

[The Real Maroonblood]

25 minutes ago, Jambo-Jimbo said:

OFGEM has announced that it is to review the energy price cap every 3 months from October, instead of the current 6 monthly review.

They say that by doing it this way there shouldn't be large increases such as we seen in April, however this now means that your gas & electric could rise 4 times a year, albeit in smaller chunks.

 

Of course there is always the chance that prices might fall, which would mean a reduction being passed on quicker..........aye ok.

https://www.bbc.co.uk/news/business-61462584

Fantastic news.

[Jambo-Jimbo]

57 minutes ago, The Real Maroonblood said:

Fantastic news.

 

Yes, I know, the worst of it is, the guy from OFGEM who announced this change on the news this morning, came over as he really thought he was doing everybody a favour with this change.

 

So now we have the prospect of a price increase in October and then another in January/February.......wonderful.

[The Real Maroonblood]

1 hour ago, Jambo-Jimbo said:

 

Yes, I know, the worst of it is, the guy from OFGEM who announced this change on the news this morning, came over as he really thought he was doing everybody a favour with this change.

 

So now we have the prospect of a price increase in October and then another in January/February.......wonderful.

Sad times.

[ri Alban]

2 hours ago, The Real Maroonblood said:

Sad times.

This will finish the rest of us, that covid didn't get .

[OBE]

27 minutes ago, ri Alban said:

This will finish the rest of us, that covid didn't get .

 Starve and freeze us...

[ri Alban]

1 minute ago, OBE said:

 Starve and freeze us...

I don't see why they can't put the cap back for a year or two. Exploitation, especially when Scotland uses renewables for electric.

 

The Petrol and diesel are still out of order anaw. The government must be raking it in. If I hear Scotland has overspent or has a deficit next year I will probably shoot masel.

[Malinga the Swinga]

3 minutes ago, ri Alban said:

I don't see why they can't put the cap back for a year or two. Exploitation, especially when Scotland uses renewables for electric.

 

The Petrol and diesel are still out of order anaw. The government must be raking it in. If I hear Scotland has overspent or has a deficit next year I will probably shoot masel.

Scotland has overspent and predicted to have a deficit next year. 

 

 

 

 

 

 

 

 

 

 

 

 

Only joking, enjoy the golf.

[ri Alban]

1 minute ago, Malinga the Swinga said:

Scotland has overspent and predicted to have a deficit next year. 

 

 

 

 

 

 

 

 

 

 

 

 

Only joking, enjoy the golf.

. 

 

 

  

 

 

 

 

As for inflation and the robbery of the people. Winter is going to be shite, when it all goes up again. 

[jamb0_1874]

I'm so glad we have these people to lead us through the up and coming economic crisis that lies around the corner....

 

https://www.bloomberg.com/news/articles/2022-05-16/work-more-or-get-better-paid-jobs-to-afford-rising-prices-says-minister

 

[ri Alban]

We work our baws aff, for these freeloaders to tell us to work longer or get these imaginary better paid jobs. Thankfully my wages are going up and my wife is now working.

[JudyJudyJudy]

1 hour ago, ri Alban said:

. 

 

 

  

 

 

 

 

As for inflation and the robbery of the people. Winter is going to be shite, when it all goes up again. 

 

[Cade]

Energy price cap changed.

 

It's now being reviewed every 3 months instead of every 6 months.

 

So it won't be October until the next rise.

 

It'll be July.

 

Then another one in October.

 

Keep voting blue, ya morons.

[Nucky Thompson]

1 hour ago, ri Alban said:

 Thankfully my wages are going up and my wife is now working.

There you go then. It was good advice after all 

[Jambo-Jimbo]

25 minutes ago, Cade said:

Energy price cap changed.

 

It's now being reviewed every 3 months instead of every 6 months.

 

So it won't be October until the next rise.

 

It'll be July.

 

Then another one in October.

 

Keep voting blue, ya morons.

 

No it's every 3 months from October.

 

Edit: I posted this link this morning about the new plans.

https://www.bbc.co.uk/news/business-61462584

Edited May 16, 2022 by Jambo-Jimbo

[Cade]

Ah right, so up in October, then again in January?

 

That'll be great.

[Jambo-Jimbo]

38 minutes ago, Cade said:

Ah right, so up in October, then again in January?

 

That'll be great.

 

Indeed, something to look forward to.

[Jeffros Furios]

Martin Lewis lost the plot with Ofgem this morning.. Good guy .

 

[SwindonJambo]

3 hours ago, Jeffros Furios said:

Martin Lewis lost the plot with Ofgem this morning.. Good guy .

 

 

He is indeed. He lost the rag and swore at them, later apologising.

[ri Alban]

9 hours ago, Nucky Thompson said:

There you go then. It was good advice after all 

Fae who? 

 

 

Seriously tho, I'm working tho I've a few serious injuries and Mrs is working even tho she shouldn't, as she has a massive blood clot in her thigh . I need to take some time off, but can't and she needs to not be working but she can't. I've told her not to work, and I'll do 7 days again, but she struggles on regardless, mostly because she loves her new car, no me.

 

[jambo89]

How many times has the energy price cap decreased?

[Jambo-Jimbo]

2 hours ago, jambo89 said:

How many times has the energy price cap decreased?

 

I don't think it ever has, I certainly can't recall it ever falling.

[Unknown user]

3 hours ago, jambo89 said:

How many times has the energy price cap decreased?

It's only been active since January 2019, it's gone down 4 times since then, although by very small amounts.

 

Cap period Cap Rate 

January 2019 £1,137

April 2019 £1,254

October 2019 £1,179

April 2020 £1,126

October 2020 £1,042

January 2021 £1,138

October 2021 £1,277

January 2022 £1,277

April 2022 £1,971

 

 

https://www.electricityprices.org.uk/history-of-the-energy-price-cap/

[jambo89]

23 minutes ago, Smithee said:

It's only been active since January 2019, it's gone down 4 times since then, although by very small amounts.

 

Cap period Cap Rate 

January 2019 £1,137

April 2019 £1,254

October 2019 £1,179

April 2020 £1,126

October 2020 £1,042

January 2021 £1,138

October 2021 £1,277

January 2022 £1,277

April 2022 £1,971

 

 

https://www.electricityprices.org.uk/history-of-the-energy-price-cap/

Thanks. Good to know that it could eventually drop down, but have my doubts about OfGem and their impartiality to the big boys

[SectionDJambo]

I'm not bright enough to be an economist, so this confuses me.

How can an increase in interest rates help inflation during a cost of living crisis, when the drivers of that inflation are rising energy prices and rising food prices, both out of our control we are told by the government, and not wage increases?

How can adding to our cost of living by raising mortgage payments for many, help the UK population and bring down inflation?

 

[jambo89]

10 minutes ago, SectionDJambo said:

I'm not bright enough to be an economist, so this confuses me.

How can an increase in interest rates help inflation during a cost of living crisis, when the drivers of that inflation are rising energy prices and rising food prices, both out of our control we are told by the government, and not wage increases?

How can adding to our cost of living by raising mortgage payments for many, help the UK population and bring down inflation?

 

I'm not too sure, but I assume it has something to do with spending. If you raise intrest rates, people borrow less and so spending is reduced. If spending is reduced, there is less money floating around for people to buy things. This, I assume, would help to 'drop' prices as it would be a case of either reduce the price to something people can afford (now that they have less money) or don't sell it at all.

[Jambo-Jimbo]

49 minutes ago, jambo89 said:

I'm not too sure, but I assume it has something to do with spending. If you raise intrest rates, people borrow less and so spending is reduced. If spending is reduced, there is less money floating around for people to buy things. This, I assume, would help to 'drop' prices as it would be a case of either reduce the price to something people can afford (now that they have less money) or don't sell it at all.

 

Yeh, I think that's the general idea of things, to find a balance between stopping people spending too much, but not stopping them altogether causing a recession, it's all fine margins tbh, way over my head.

[Unknown user]

1 hour ago, jambo89 said:

Thanks. Good to know that it could eventually drop down, but have my doubts about OfGem and their impartiality to the big boys

Of course, you'd be mad not to suspect this government's helping their mates rinse the country for all we've got

[Cade]

1 hour ago, SectionDJambo said:

I'm not bright enough to be an economist, so this confuses me.

How can an increase in interest rates help inflation during a cost of living crisis, when the drivers of that inflation are rising energy prices and rising food prices, both out of our control we are told by the government, and not wage increases?

How can adding to our cost of living by raising mortgage payments for many, help the UK population and bring down inflation?

 

 

Even without the energy price hikes, inflation is still climbing.

Traditional thinking says that you hike up interest rates to discourage spending, encourage saving and bring inflation down that way as suppliers drop their prices to meet the lesser amount of available money that customers have to spend.

But then the economy is fragile and if everybody cuts their spending too much then we end up in recession, which is where we're heading now.

And to combat recession and to encourage spending, you cut interest rates to discourage savings and make borrowing cheaper.

 

What we're facing now is "stagflation" where the economy is in recession AND inflation is soaring.

Then the traditional fiscal levers stop working.

 

THEN you do have to do things like suddenly increase wages.

But that only then further drives up inflation as producers (and landlords) put their prices up to match the extra cash swirling around the system.

So wages get put up again, and then prices go up again, and then wages go up again then you're back in the 1970s with 25% inflation, a devalued currency which affects import/exports and a fecked economy.

 

Other nations are combating the cost of living crisis by putting stringent caps on energy prices and hitting energy companies with windfalls taxes in an effort to reduce the prices to help the people. Nations with a nationalised energy industry can do this even better.

 

Food prices are a combination of Brexit making import/export worse and the war in Ukraine pushing grain prices up and the lag from other nations' supply chains which are still recovering output after the main Covid waves.

No easy fixes there, other than subsiding your own farming industry to cut production of meat and up production of human feed crops. (1/3 of farmland that could be used to grow crops is used for animal grazing, another 1/3 is used to grow crops to feed those animals and only 1/3 is used to grow food for people). Increasing domestic supply of food crops is pretty much the only way you are going to bring down food prices, and then only for crops which can be grown in your climate.

[Tommy Brown]

2 hours ago, SectionDJambo said:

I'm not bright enough to be an economist, so this confuses me.

How can an increase in interest rates help inflation during a cost of living crisis, when the drivers of that inflation are rising energy prices and rising food prices, both out of our control we are told by the government, and not wage increases?

How can adding to our cost of living by raising mortgage payments for many, help the UK population and bring down inflation?

 

posted the exact same question very early in this thread.

 

No answer came forward, looks af if Kickback doesn't have an economics expert

 

[SuperstarSteve]

If the banks were to keep raising interest rates with inflation at over 10% wouldn’t the housing market eventually crash?

[SuperstarSteve]

Tongue in cheek comment …government should take the 200 million they gave Michelle mone and give the 65 million Brits a million. Job done. 

[Gizmo]

8 minutes ago, SuperstarSteve said:

Tongue in cheek comment …government should take the 200 million they gave Michelle mone and give the 65 million Brits a million. Job done. 

I'd love to see that odious individual have to repay her ill-gotten gains but I don't think the £3.07 we would each receive would really make much difference to the cost of living crisis.

[SuperstarSteve]

8 minutes ago, Gizmo said:

I'd love to see that odious individual have to repay her ill-gotten gains but I don't think the £3.07 we would each receive would really make much difference to the cost of living crisis.

I meant a million each my mistake 😂. There is a certain mp who would disagree that £3.07 won’t make much difference though. If 30p a week is enough to survive £3.07 is big bucks! 

[Pans Jambo]

2 hours ago, Cade said:

Food prices are a combination of Brexit making import/export worse and the war in Ukraine pushing grain prices up and the lag from other nations' supply chains which are still recovering output after the main Covid waves.

No easy fixes there, other than subsiding your own farming industry to cut production of meat and up production of human feed crops. (1/3 of farmland that could be used to grow crops is used for animal grazing, another 1/3 is used to grow crops to feed those animals and only 1/3 is used to grow food for people). Increasing domestic supply of food crops is pretty much the only way you are going to bring down food prices, and then only for crops which can be grown in your climate.

Good post.

 

Your last bit though could be hampered by the amount of bloody hooses (that nobody will buy once the interest rates creep up) being built on decent agricultural land. Is down in East Lothian anyway. The planners have surrendered our future food security for £450K 4 bed detached housing stock.

[ri Alban]

6 minutes ago, SuperstarSteve said:

I meant a million each my mistake 😂. There is a certain mp who would disagree that £3.07 won’t make much difference though. If 30p a week is enough to survive £3.07 is big bucks! 

£ 65,000,000,000,000 I'd spend that no bother. 

[The Mighty Thor]

Pretty stark when you see it in this context. A third of the state pension. Just on energy. 

 

FFS. 

[joondalupjambo]

House opposite me, basically a 1980's cardboard box with paper thin walls and miniature rooms.  All done up modern way.  Sold in a fortnight for well over 300k.  Some folk have so much money this whole inflation/ cost of living crisis is seemingly irrelevant.  We live in a desirable location in the East Neuk.  Folk just want a lifestyle at all costs and want to pay over the odds.  We also have six brand new massive modern homes being built, 650 k each and all sold off plan.

 

Let's stop thinking everyone is fecked here, that is just plain wrong.

[WorldChampions1902]

48 minutes ago, joondalupjambo said:

House opposite me, basically a 1980's cardboard box with paper thin walls and miniature rooms.  All done up modern way.  Sold in a fortnight for well over 300k.  Some folk have so much money this whole inflation/ cost of living crisis is seemingly irrelevant.  We live in a desirable location in the East Neuk.  Folk just want a lifestyle at all costs and want to pay over the odds.  We also have six brand new massive modern homes being built, 650 k each and all sold off plan.

 

Let's stop thinking everyone is fecked here, that is just plain wrong.

Inflation is very much a new concept for the younger generation. So is ‘Negative Equity’.  It’s on its way.  ETA 2024 IMHO.

[joondalupjambo]

Just now, WorldChampions1902 said:

Inflation is very much a new concept for the younger generation. So is ‘Negative Equity’.  It’s on its way.  ETA 2024 IMHO.

Yep.  When I was living in Oz the housing market went up and down like a whoors drawers. Folk spent have their time crying in their Fosters until it climbed because so many had huge interest only mortgages.  It was a roller coaster but the market always seem to end up positive. 

 

However here I think a huge number are buying with inheritance money and/or pension funds at the moment.  Funnily enough I think when the downturn does finally hit, and it quite possibly will then these folk near me who purchased, many using cash will not see negative equity, they will see so what lost a few grand but look at the quality of life I have.  For these types it will be a balance still in their favour in their eyes.

 

If they had to borrow the money and work their socks off to repay it then it would be different for them.  Life for many is very cushy.

 

Young, and/or inexperienced folk new to the market and risk takers who want it all now, all who have borrowed excessively could get hurt badly though.

 

[Gizmo]

Thread on wholesale gas prices:
 

 

[Don Dan]

https://apple.news/AphB4sNkNTI-7ZDegMjZaYw

[jamb0_1874]

9 hours ago, Cade said:

 

Food prices are a combination of Brexit making import/export worse and the war in Ukraine pushing grain prices up and the lag from other nations' supply chains which are still recovering output after the main Covid waves.

No easy fixes there, other than subsiding your own farming industry to cut production of meat and up production of human feed crops. (1/3 of farmland that could be used to grow crops is used for animal grazing, another 1/3 is used to grow crops to feed those animals and only 1/3 is used to grow food for people). Increasing domestic supply of food crops is pretty much the only way you are going to bring down food prices, and then only for crops which can be grown in your climate.

 

The fact that oil & gas and grain, and pretty much everything tbh, is pretty much traded as a global commodity makes the whole issue/situation even worse. 😔

[Cade]

44 minutes ago, jamb0_1874 said:

 

The fact that oil & gas and grain, and pretty much everything tbh, is pretty much traded as a global commodity makes the whole issue/situation even worse. 😔

 

Aye well commodities speculators deliberately stockpiling and withholding deliveries of grain in order to push the prices up is something that's been round for ages.

An international scandal.

 

[Jambo_jim2001]

On 15/05/2022 at 10:45, Konrad von Carstein said:

Being married to one of those ladies I am well aware of that

Like me I was born handsome,the Mrs made me look like this now😂

[ri Alban]

6 hours ago, Jambo_jim2001 said:

Like me I was born handsome,the Mrs made me look like this now😂

[joondalupjambo]

Liz Truss in BBC saying key answer to the current financial state of the country is to create the high skilled, high value jobs into the UK. 

 

Can somebody explain please how that helps the poor?  Is this the usual Tory mantra of drip feed economics?  Top lot do well and feeds done to Joe Blow.  Is that not their usual long term strategy for the economy so how that does that help people now?

 

Of course she would not / could not answer that question in detail apart from we have a fund to help the worse off and we took 5p off fuel duty.  These folk are lost in space.