Inflation watch

[BritDownUnder]

People are not in open revolt because they are probably unaware of the true level of inflation. The frog is being boiled slowly. Maybe people are being rational and know that you can't get more money from a bankrupt government and can't get oil when it is not there.

Of course you can mitigate inflation by being clever and grow a bit of your own food, produce your own power, get an EV.

[mr brightside]

If things are shit for long enough, they become the norm.

[clv101]

Our bombastic friend, Zeihan, has some comments on inflation here: https://youtube.com/watch?v=f6_9TiXFTI0 ... IECMiOmarE

[BritDownUnder]

Our bombastic friend, Zeihan, has some comments on inflation here: https://youtube.com/watch?v=f6_9TiXFTI0 ... IECMiOmarE

Exhale ...... Good Luck!

If you believed everything he said then you would not worry about the massive opioid crisis in the US, the illegal immigration and the massive trade deficit and government debt. And let's not get started on global warming. Good Luck indeed. Problem is everyone else has it worse.
I don't share his cornucopian optimism about things but the US is just about the best place to be right now, except for Australia of course.

If governments think they can cure 10% inflation with 4% interest rates then someone needs to go back to school.

On things being the norm I think people in the UK are quite realistic about the current situation.

[clv101]

Take everything he says with a tablespoon of salt, there's a lot of hyperbole, he's a bit of a showman. He's pretty weak on energy and delusional optimistic about US prospects but his demographics and globalisation stuff seems good.

[mr brightside]

I think i need a 'layperson's translation' for what he said in the video, but at least he's getting himself out into the great outdoors.

[UndercoverElephant]

https://www.bbc.co.uk/news/business-65966723

Interest rate rise expected after UK inflation shock

Inflation, which measures the pace prices rise at, was 8.7% in the year to May, the same rate it was in April.

Prices for flights and second-hand cars rising led to the unexpected figure, but the cost of food and energy is already hitting household budgets hard.

Interest rates are widely expected to rise by 0.25% to 4.75% on Thursday but some suggest they could now rise to 5%.

The Bank is tasked with keeping inflation at 2% but the current inflation rate is four times higher than this.

Shocking! Not. Utterly predictable.

[PS_RalphW]

My 4kwp 10kwh solar and battery system was finally turned on today. 5kw emergency power during a power cut.

One less expense each month.

[UndercoverElephant]

My 4kwp 10kwh solar and battery system was finally turned on today. 5kw emergency power during a power cut.

One less expense each month.

We have got 10 free solar panels, a free heat pump and the radiators all changed for free, coming next week. Paying for an extra 2 panels, and then we are privately paying the same company to install a hybrid converter and battery next month. Combined with a woodburner and lots of wood, plus vegetables and our flock of ducks and geese, we will really be getting our outgoings down.

[kenneal - lagger]

I would have thought one of the biggest drivers of wage inflation at the moment is rising mortgage costs and who is driving that? The BOE with its interest rate rises.

Also rising new housing costs are being driven by the national house builders, large contributors to government funds, and the banks who have been engineering higher house prices ever since were allowed into the housing market in a big way.

[UndercoverElephant]

I would have thought one of the biggest drivers of wage inflation at the moment is rising mortgage costs and who is driving that? The BOE with its interest rate rises.

The BoE is supposed to keep inflation at 2%. If it gives up on that, then it raises fundamental questions about why the BoE exists and what its constitutional role is. It has only one tool for bringing inflation down, and that is raising interest rates.

I think they are going to go even higher.

[BritDownUnder]

I would have thought one of the biggest drivers of wage inflation at the moment is rising mortgage costs and who is driving that? The BOE with its interest rate rises.

The BoE is supposed to keep inflation at 2%. If it gives up on that, then it raises fundamental questions about why the BoE exists and what its constitutional role is. It has only one tool for bringing inflation down, and that is raising interest rates.

I think they are going to go even higher.

I think you are probably right. Interest rates need to exceed the inflation rate to be really effective and encourage people to get a reward from saving rather than lose money by saving.

Looks like inflation is getting entrenched in UK plc.

[UndercoverElephant]

Looks like inflation is getting entrenched in UK plc.

It is entrenched everywhere.

[mr brightside]

Whilst quaffing on the bountiful produce of Kirkstall Brewery this evening, i realised i am now spending £55 on ale every week. As a hilarious aside, it appears i had forgotten my password, despite logging on most mornings! I blame peak alcohol tolerence, which i have probably aged beyond.

[clv101]

Home brew will save you a pretty penny!