Cost of living squeeze in 2022
Discussion
Throttlebody said:
Deep Thought said:
Square Leg said:
Throttlebody said:
And now a huge education for millions on the cyclic nature of the economy.
Unfortunately, provide cheap debt and people just can’t help themselves.
We’re on an enforced adjustment to a greater good.
How long will this enforced adjustment last, and when will we know it’s finished?
Yes, we best let the poor and vulnerable know how long they have to suffer for just so that the middle class gets their comeuppance.
Years. Even peak pain is still a long way off. Economic contagion will become a serious issue.
You seem very uncomfortable with the reality of the situation.
Even people who disagree with your viewpoints would have a lot more empathy if you actually responded to what people say.
emicen said:
Welshbeef said:
So daily walk and paper popped into Budgens to see reduced whole chickens 1.4kg each.
RRP 5.99
Reduced to clear price 1.64.
I bought 5 of them - we are having a big bbq needed 10 breasts and thighs etc. we’ve saved a lot.
Who said yesterday reduced to clear would vanish - no it will not.
RRP 5.99
Reduced to clear price 1.64.
I bought 5 of them - we are having a big bbq needed 10 breasts and thighs etc. we’ve saved a lot.
Who said yesterday reduced to clear would vanish - no it will not.
Did ye aye?
Welshbeef said:
emicen said:
Welshbeef said:
So daily walk and paper popped into Budgens to see reduced whole chickens 1.4kg each.
RRP 5.99
Reduced to clear price 1.64.
I bought 5 of them - we are having a big bbq needed 10 breasts and thighs etc. we’ve saved a lot.
Who said yesterday reduced to clear would vanish - no it will not.
RRP 5.99
Reduced to clear price 1.64.
I bought 5 of them - we are having a big bbq needed 10 breasts and thighs etc. we’ve saved a lot.
Who said yesterday reduced to clear would vanish - no it will not.
Did ye aye?
True story dat Fam.
Picture of till receipt in front of 5, discount marked, whole chickens please…
Probably for the finance forum, but should I ditch the base rate tracker element of my mortgage?
Just had a look and I can get 2.85% on a 5 year fix with my current provider (or 2.75% with a £500 fee) [Chelsea BS]
I've held off as currently paying around 0.75% I think (including the collar). Also parts of the mortgage are on a fixed rate so I'm not totally exposed (but obviously would be if rates rise dramatically and the fixed period ended)
Any chance they could stabilise under 3%?
Just had a look and I can get 2.85% on a 5 year fix with my current provider (or 2.75% with a £500 fee) [Chelsea BS]
I've held off as currently paying around 0.75% I think (including the collar). Also parts of the mortgage are on a fixed rate so I'm not totally exposed (but obviously would be if rates rise dramatically and the fixed period ended)
Any chance they could stabilise under 3%?
gotoPzero said:
The big difference at the moment is those who have been pretty comfortable even when being spendy are now starting to feel the pain.
Utilities going from 100 a month to 250.
Monthly food shop going from 400 to 500.
Petrol / Diesel up 30%.
Council tax up.
Cost of goods and services up.
Someone who maybe used to get to the end of the month with 1000 "fun money" might now find they have lost half or more of that on the cost of living increases.
Its rattling people big time.
Yes those who were living month to month are probably going to have a hard time of it for a while, but like I say the big difference now is its impacting those who were actually pretty much sorted financially and a lot of these people will be sub 40 and have never experienced this sort of thing before.
Its a lesson to everyone that holding an emergency fund is a good idea not only for if you are out of work etc but also if something like this happens it takes a lot of pressure off.
The only impact from those with £1k 'fun money' spare each month having less of it, is the knock-on effect to the rest of the economy. The sympathy for those folks should be reserved for those who, before this began, had zero fun money.Utilities going from 100 a month to 250.
Monthly food shop going from 400 to 500.
Petrol / Diesel up 30%.
Council tax up.
Cost of goods and services up.
Someone who maybe used to get to the end of the month with 1000 "fun money" might now find they have lost half or more of that on the cost of living increases.
Its rattling people big time.
Yes those who were living month to month are probably going to have a hard time of it for a while, but like I say the big difference now is its impacting those who were actually pretty much sorted financially and a lot of these people will be sub 40 and have never experienced this sort of thing before.
Its a lesson to everyone that holding an emergency fund is a good idea not only for if you are out of work etc but also if something like this happens it takes a lot of pressure off.
In any case, your figures seem to imply utilities have gone up 150% and not 54%. Plus you're ignoring pay growth which right now is higher than council tax growth and on a par with food inflation.
emicen said:
Welshbeef said:
emicen said:
Welshbeef said:
So daily walk and paper popped into Budgens to see reduced whole chickens 1.4kg each.
RRP 5.99
Reduced to clear price 1.64.
I bought 5 of them - we are having a big bbq needed 10 breasts and thighs etc. we’ve saved a lot.
Who said yesterday reduced to clear would vanish - no it will not.
RRP 5.99
Reduced to clear price 1.64.
I bought 5 of them - we are having a big bbq needed 10 breasts and thighs etc. we’ve saved a lot.
Who said yesterday reduced to clear would vanish - no it will not.
Did ye aye?
True story dat Fam.
Doubtful. Of course, in this instance, easy to prove me wrong.
Picture of till receipt in front of 5, discount marked, whole chickens please…
🤣
Hey look at this——->
High fives. And fist pumps is it bro?
Mark Benson said:
Surely the only lever the BoE have left (assuming they're not going to crash the housing market, much to Tannhauser's dismay) is to reduce the money supply?
I don't see any other lever left to pull but the one marked 'QT'. Especially as a big underlying driver for inflation is the ever-increasing supply of money reated post 2008.
It depends what the problem actually is that the BoE is trying to solve wrt to what levers they have left I suppose.
Central banking is mostly a confidence trick - Powell in the US/Fed understands this much better than the BoE and is attempting to play that game a lot more sensibly than Bailey who's been all over the place with his and the MPC's communication (or miscommunications more correctly). QT in the UK is potentially a considerably bigger problem than the US because the maturity profiles of balance sheet holdings here are much longer dated so the BoE can't simply rely on stuff redeeming over time to reduce their balance sheet sizes and will have to be actively selling their gilts and any meaningful quantitative tightening here will likely have a considerably more disruptive impact on UK debt yields as it's not as if the government is going to be able to massively reduce spending much further (we're still attempting iirc to flog over 100b of new issued debt this financial year still for example).
It's an open question as to whether the central banks really are thinking raising rates are the lever to use to reduce the current inflation levels which are arguably more a supply/post pandemic driven issue rather than a money printing one (albeit one that has been on the slow burner since 2008). However given base rates are the most 'visible' of the central banking interventions that everyone recognises, it's used now more as a brute force statement of intent of 'doing whatever it takes' to reduce inflation even if it causes an economic contraction because the CBs believe that will then act to reduce forward expectations of inflation...
johnboy1975 said:
Probably for the finance forum, but should I ditch the base rate tracker element of my mortgage?
Just had a look and I can get 2.85% on a 5 year fix with my current provider (or 2.75% with a 500 fee) [Chelsea BS]
I've held off as currently paying around 0.75% I think (including the collar). Also parts of the mortgage are on a fixed rate so I'm not totally exposed (but obviously would be if rates rise dramatically and the fixed period ended)
Any chance they could stabilise under 3%?
Just had a look and I can get 2.85% on a 5 year fix with my current provider (or 2.75% with a 500 fee) [Chelsea BS]
I've held off as currently paying around 0.75% I think (including the collar). Also parts of the mortgage are on a fixed rate so I'm not totally exposed (but obviously would be if rates rise dramatically and the fixed period ended)
Any chance they could stabilise under 3%?
fwiw.... the GBP interest rate swaps market currently is pricing interest rates to be peaking at 3-4 years but probably it's not unreasonably thought that the government and/or the BoE will make such a hash of things, due the economy being so buggered up that the BoE will have to start cutting rates again......
Holding a bit of cash in the Nationwide for years, drawing some down and re-investing as I wanted.
Then I noticed that the CEO had been on the self rewarding bandwagon in a strong way, so much responsibility and what had been achieved for the business. Except of course it’s owned by the Members and is not subjected to the stress of shareholders, and yet his reward had risen substantially. Vote against but that about it for me. Acted on the only option but left a few pounds in to keep the account open.
Hope that I may get lucky on NSI now
Then I noticed that the CEO had been on the self rewarding bandwagon in a strong way, so much responsibility and what had been achieved for the business. Except of course it’s owned by the Members and is not subjected to the stress of shareholders, and yet his reward had risen substantially. Vote against but that about it for me. Acted on the only option but left a few pounds in to keep the account open.
Hope that I may get lucky on NSI now
Welshbeef said:
Throttlebody said:
Equities taking another big hit today. Fears of recession, low growth and interest rate rises playing out across the world markets. Volatile.
How’s that pension pot of yours looking like?
Less to draw down on and far more expensive goods to buy. You going to struggle?
Throttlebody said:
Welshbeef said:
Throttlebody said:
Equities taking another big hit today. Fears of recession, low growth and interest rate rises playing out across the world markets. Volatile.
How’s that pension pot of yours looking like?
Less to draw down on and far more expensive goods to buy. You going to struggle?
Struggle? Nope.
Big call there.
Also what if your wrong - then whatever setup you have your in the wrong position that’s going to be frustrating seeing Luther’s outgun you - when you mocked what appears to be everyone but yourself and gleefully want to see others in trouble?
Cobracc said:
Sway said:
tannhauser said:
Gweeds said:
Deep Thought said:
You seem to "wish for" plenty of things to happen.
Mainly seeing other people suffer by the looks of it.
If they're hard working and prudent, they've not been 'locked out' of the housing market.
As shown by owner-occupier rates.
Meanwhile, all the things you're calling for will hurt the poorest much more than those with BTL portfolios that you really hate.
Total b
ks.I know so many hard working young people under 35 who haven't a hope in hell of buying their own property!
The government could help correct the housing market but with the tories it would be like Turkeys voting for Christmas.
ks’ either.Step daughter (24 yo admin worker for a kids charity) and her partner (25 yo bricklayer) move into their first house next week.
Modest 2 bed new build on a half decent new estate in SW England.
Saving hard for a deposit together for years. Help to buy ISA each.
They’ve been prudent but not miserable - eg camping instead of foreign holidays.
Nothing from parents except cheap(ish) rent at home since they started saving for a deposit.
They’ll be eating value baked beans on toast for a while but happy because it’ll be under their own roof. Pleased for and proud of them, they’ve worked their balls off for it.
ETA
Before all the doom mongers and whingers wade in - yes I know it’s one example, in one part of the UK but proof that normal ‘young’ people can sometimes get a foot in the door.
emicen said:
Doubtful. Of course, in this instance, easy to prove me wrong.
Picture of till receipt in front of 5, discount marked, whole chickens please…
It's relentless.
True or not it's just full on relentless.
I've just paid a fiver for a bottle of beer in Birmingham New Street Station
If the cost of living gets higher I'll have to drink draught.
FML
Cobracc said:
Total b
ks.I know so many hard working young people under 35 who haven't a hope in hell of buying their own property!
The government could help correct the housing market but with the tories it would be like Turkeys voting for Christmas.
In 12 years of Tory (+ Lib Dem) govt since 2010 they have risen 55%.
Source: Nationwide Building Society
isaldiri said:
fwiw.... the GBP interest rate swaps market currently is pricing interest rates to be peaking at 3-4 years but probably it's not unreasonably thought that the government and/or the BoE will make such a hash of things, due the economy being so buggered up that the BoE will have to start cutting rates again......
But I'm now beginning to consider the possibility that they are going to arse this up so badly that rate rises spiral out of control to 10% plus.
https://www.bbc.co.uk/news/business-61319867
said:
The MPC's forecasts are based on market expectations that interest rates will rise as high as 2.5% in mid-2023 before falling back again.5 May 2022
swanny71 said:
Not easy, but not ‘total b
ks’ either.Step daughter (24 yo admin worker for a kids charity) and her partner (25 yo bricklayer) move into their first house next week.
Modest 2 bed new build on a half decent new estate in SW England.
Saving hard for a deposit together for years. Help to buy ISA each.
They’ve been prudent but not miserable - eg camping instead of foreign holidays.
Nothing from parents except cheap(ish) rent at home since they started saving for a deposit.
They’ll be eating value baked beans on toast for a while but happy because it’ll be under their own roof. Pleased for and proud of them, they’ve worked their balls off for it.
ETA
Before all the doom mongers and whingers wade in - yes I know it’s one example, in one part of the UK but proof that normal ‘young’ people can sometimes get a foot in the door.
oyster said:
Cobracc said:
Total b
ks.I know so many hard working young people under 35 who haven't a hope in hell of buying their own property!
The government could help correct the housing market but with the tories it would be like Turkeys voting for Christmas.
In 12 years of Tory (+ Lib Dem) govt since 2010 they have risen 55%.
Source: Nationwide Building Society
Ooops
( remind me again how much money the great
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