High Inflation.

I tend to only do a "cupboard staples" shop once a month and was astonished yesterday to see that prices have rocketed so much since last month. I've no idea how families with growing children are coping, especially if they're on fixed incomes with no leeway to earn more.

MaizieD

Sensible post, FannyCornforth

We're in for a recession and so far the government have made the pain worse by cutting the incomes of those who will have to give up the most. The Bank of England is about to make it worse by raising interest rates because they think that is the way to halt inflation. That would only work if the inflation is caused by too much money chasing too few resources, then raising interest rates would (in theory) dampen demand.

But that's not the cause of this inflation, is it? It's soaring energy prices, problems with the supply chain (anyone noted the huge lorry queues at Dover?) and war in Ukraine.

And, as has really been noted already on this thread, it is the poor, and the people who are just about managing to live a fairly comfortable life style who are going to be hardest hit. The moderately well off (i.e, those with a substantial cash buffer) and above are going to be able to absorb increased costs.

You've said exactly what I have been thinking - that this particular bout of inflation is caused by external factors, so raising interest rates will not curb it, but will almost certainly speed up/worsen the impending recession.

I fear that we ain't seen nothing yet!

Kate49, 10.02: don't you love it when people with a starting salary of £80, 000+( plus expenses) give advice to the rest of us on how to economise?!

Chewbacca

I tend to only do a "cupboard staples" shop once a month and was astonished yesterday to see that prices have rocketed so much since last month. I've no idea how families with growing children are coping, especially if they're on fixed incomes with no leeway to earn more.

Yes, they have. I only buy basic foods too and nearly everything has gone up by a few pence. Over a whole shopping trolley, the increase is about 10-15% (for some items more).

We have a different sort of economy now. What is known as a "service" economy rather than a manufacturing economy. Very many people's jobs are in the service sector, which relies on people having enough spare money to buy sandwiches, coffees, meals out etc.
If the people that normally keep these businesses going are unable to afford it any longer, then we will have mass unemployment.
What some of us see as non essential extras, are what is keeping our economy afloat.

This government doesn't seem to understand what poverty really means
Nor do they seem to care

Yes, they have. I only buy basic foods too and nearly everything has gone up by a few pence. Over a whole shopping trolley, the increase is about 10-15% (for some items more).

Jack Munro drew attention to this several weeks ago, didn't she? That although the over all rate of inflation was, as I recall, about 6% a lot of the cheap staples that very poor people depend on had gone up by as much as 15%.

MaizieD

^Yes, they have. I only buy basic foods too and nearly everything has gone up by a few pence. Over a whole shopping trolley, the increase is about 10-15% (for some items more).^

Jack Munro drew attention to this several weeks ago, didn't she? That although the over all rate of inflation was, as I recall, about 6% a lot of the cheap staples that very poor people depend on had gone up by as much as 15%.

I believe that by Jack bringing this to the attention of supermarkets Asda, Aldi &
Lidl have reduced the prices of their basic ranges, let’s hope the other big stores follow.

Kate1949

Our children and grandchildren like to go to pricey restaurants regularly, not just for special occasions. It's what they like to do. They work hard and can afford it so why not.
We don't eat out often but if we do, its usually cheap and cheerful. The last one was Wetherspoons. A toasted panini for me, small all day breakfast for DH, two large glasses if wine £13 ish the lot. It was lovely. Each to their own.

Yes it’s your money spend it on what you want, but I have a feeling it’s going to get worse as wage demands try to catch up with inflation.
One way or another benefits will have to go up as well.

One way or another benefits will have to go up as well.

How do you think that is going to happen, Katie59?

This is the government that took away the £20 'uplift to UC. That voted not to feed poor children in the holidays during lock down, that took away the pension triple lock and is now imposing unnecessary taxation on us in the name of 'repaying' money that we don't actually owe.

Can you really see them increasing benefits?

Yes Chocolatelovinggran. He must have been so pleased with himself after his light bulb moment. Telling us what we already knew.

Chewbacca

I tend to only do a "cupboard staples" shop once a month and was astonished yesterday to see that prices have rocketed so much since last month. I've no idea how families with growing children are coping, especially if they're on fixed incomes with no leeway to earn more.

I only drink one brand of instant coffee so I know how much it costs on my online order. This week I needed a hat and noticed it is now £4.50 instead of £3.50 which I paid last month. It was not on offer last month, it had been that price for a long time.

MaizieD

^One way or another benefits will have to go up as well.^

How do you think that is going to happen, Katie59?

This is the government that took away the £20 'uplift to UC. That voted not to feed poor children in the holidays during lock down, that took away the pension triple lock and is now imposing unnecessary taxation on us in the name of 'repaying' money that we don't actually owe.

Can you really see them increasing benefits?

If enough voters put enough pressure on MPs it will happen, with prices going up the government is collecting more VAT, a lot more and can afford it

I posted this somewhere else last week, Katie59, but I think it is pertinent here:

...faced with a burgeoning economic crisis, this post-Brexit government is bereft of workable ideas. Its flagship policy has proved an economic dud, but it is inherent in the government’s very formation to be unable to admit that, or to produce any policies that might ameliorate it. Having smashed up the old order, all they can do is stare in slack-jawed bemusement at the rubble around them, like a convention of peculiarly vandalistic village idiots who accidentally got control of a wrecking-ball.

They are ideologically opposed to increasing benefits. I bet they won't do it. They couldn't even bear to fund electricity users to get £150 off their massive bills this year. They forced a 'loan' on us that will have to be paid back regardless of whether or not people, such as very new customers, have even used any electricity. And tried to make it look like a big favour to the populace.

Forgot the link:

chrisgreybrexitblog.blogspot.com/2022/

MaizieD

I posted this somewhere else last week, Katie59, but I think it is pertinent here:

...faced with a burgeoning economic crisis, this post-Brexit government is bereft of workable ideas. Its flagship policy has proved an economic dud, but it is inherent in the government’s very formation to be unable to admit that, or to produce any policies that might ameliorate it. Having smashed up the old order, all they can do is stare in slack-jawed bemusement at the rubble around them, like a convention of peculiarly vandalistic village idiots who accidentally got control of a wrecking-ball.

They are ideologically opposed to increasing benefits. I bet they won't do it. They couldn't even bear to fund electricity users to get £150 off their massive bills this year. They forced a 'loan' on us that will have to be paid back regardless of whether or not people, such as very new customers, have even used any electricity. And tried to make it look like a big favour to the populace.

In a Q and A with Mumsnet Sunak said it would be foolish to give more help at the moment. Here is what he said:

Asked about the possibility of more support, Mr Sunak said: “Now I know people are worried about it and wondering if they’re going to go up even more, and I’ve been clear from the start That we’ll see what happens. And depending on what happens to the bills, of course, if we need to act for people and provide support, we will.

“But it would be foolish to do this now or last month or month before when we don’t know what the situation will be in autumn. So I would say we will see where we are with that if we need to do more.”

Autumn is an eternity for some people who are struggling. The lack of empathy and understanding is astounding.

MaizieD much as I despise this government the £150 isn’t a loan, it is for council tax payers in Bands A to D but I believe those exempt from council tax won’t get it. The £200 to come later in the year will be a loan to be repaid over several years and most people don’t want it.

Jane43

MaizieD much as I despise this government the £150 isn’t a loan, it is for council tax payers in Bands A to D but I believe those exempt from council tax won’t get it. The £200 to come later in the year will be a loan to be repaid over several years and most people don’t want it.

Apologies for my mixing the two up.

Jane autumn may be a long way off but in the meantime we have the warmer months when heating bills won’t be such a worry.

Does anybody know what the logic was for this money being paid now rather than in the autumn, as prices went up in April, when heating bills start to reduce? I would have thought most people would have preferred it to help later, and will have spent it by the autumn?

I guess heating bills sent out in April covered previous, colder, months.

I think people would have budgeted for the bill for last winter though, because the prices hadn’t increased. I know some are very short of money, but I think next winter is going to be so hard for many people, I hate to think of older people and young families going cold, and possibly hungry too, when this money could have been a massive help to them then.

Jane43

MaizieD much as I despise this government the £150 isn’t a loan, it is for council tax payers in Bands A to D but I believe those exempt from council tax won’t get it. The £200 to come later in the year will be a loan to be repaid over several years and most people don’t want it.

Those in a Band A-D property will get it, even if they are exempt. My son is a full-time student and rents a property, but doesn't pay council tax. He told me that the forms he's had to fill in are confusing, so he's probably not the only one who hasn't understood properly.

With regard to benefits, in his car-crash interview yesterday, Johnson reiterated that the government won’t increase them further, as this would be inflationary. It’s nonsense, and, as has been pointed out, purely ideological.

And it’s been suggested this means goodbye triple lock again.

Zonne

With regard to benefits, in his car-crash interview yesterday, Johnson reiterated that the government won’t increase them further, as this would be inflationary. It’s nonsense, and, as has been pointed out, purely ideological.

And it’s been suggested this means goodbye triple lock again.

I really can’t see them not increasing the triple lock, if pensioners don’t vote for them, who will?