Cost of living squeeze in 2022

[stongle]

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......

They are not just going to balls it up, they have a bigger issue. They are unlikely to be able to inspire confidence. And in a consumer led economy, that is going to be key. You could probably weather a bit of supply shock, war inflation - people would probably eat some short term pain - but they won't long term. And there is simply a vacuum of political leadership in this country of ALL parties. It won't matter if it was Labour, or any other party. Not a single one of them has an achievable vision or long term feel good plan. Cameron split the country nearly in half, and Brexit now over shadows everything. It doesn't matter its actually fairly benign, but the losing 49% won't give up the sky's falling narrative. Some are even demanding that the sky sprinkles pixie dust before they will engage like a grown up. Throw in a bit of government avarice and hypocrisy, not to mention failing to delver on promise (level-up); it's inconceivable they will be able to fire demand and growth without VERY significant stimulus (i.e. it has to feel very tangible).

We aren't far off the ECB's issue, at least they openly talk about magic potions and extra, extra, extra extraordinary interventions and "st we haven't thought up yet". The Tories don't have the luxury of pratting around at the edges; they are actually going to need very significant stimulus tools soon - because they are going to widen inequality. They can't talk anything up, because too few trust them.....

[pghstochaj]

Earthdweller said:

oyster said:

Cobracc said:

Total bks.

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 the 13 years of Labour govt from 1997 to 2010, UK house prices rose by approx 190%.
In 12 years of Tory (+ Lib Dem) govt since 2010 they have risen 55%.



Source: Nationwide Building Society

Grrrrr toaaaries !!!

Ooops


( remind me again how much money the great Tory Leader Blair made from property dealing ? )

Amazing, a figure is quoted without context. You need to include wage growth and overall household income in such an assessment. The former because there was significant wage growth in 1997-2010 and, well, as far as I am aware, there has not been 2010 to 2022. The latter because it considers whether couples are both working (and therefore have higher buying power), something which I expect increased 1997-2010 more than it did in the period of 2010-2022.

[Red9zero]

TTmonkey said:

Food riots says Martin Lewis.

Well maybe. But where will kick off first? Any bets? Which town erupts first…?

Bristol probably. Any reason for a riot

[TTmonkey]

Red9zero said:

TTmonkey said:

Food riots says Martin Lewis.

Well maybe. But where will kick off first? Any bets? Which town erupts first…?

Bristol probably. Any reason for a riot

Great shout.

[juice]

TTmonkey said:

Red9zero said:

TTmonkey said:

Food riots says Martin Lewis.

Well maybe. But where will kick off first? Any bets? Which town erupts first…?

Bristol probably. Any reason for a riot

Great shout.

Suprised they haven't had one yet...it's been quiet lately

[moles]

Yeah I’d say Bristol as well all the eco extinction rebellion scum that live in bs5/6

[bigandclever]

TTmonkey said:

Food riots says Martin Lewis.

Well maybe. But where will kick off first? Any bets? Which town erupts first…?

Wherever finance directors with multiple properties are barging past the plebs to hoover up the discounted produce section.

[Square Leg]

bigandclever said:

TTmonkey said:

Food riots says Martin Lewis.

Well maybe. But where will kick off first? Any bets? Which town erupts first…?

Wherever finance directors with multiple properties are barging past the plebs to hoover up the discounted produce section.

But only the stuff that doesn’t need refrigerating as those have been turned off.

[Portofino]

TTmonkey said:

Food riots says Martin Lewis.

Well maybe. But where will kick off first? Any bets? Which town erupts first…?

Croydon. Just to smash in FootySlimJim to nick the latest Air Max, then set light to a shop that goes back a hundred years.

[Thankyou4calling]

I can’t get my head around all the negativity and language being used in relation to the economy.

It doesn’t bear any relationship to what I observe at all.

We’ve just come out of a pandemic, I’d say most were really surprised at how resilient the UK economy has been.

Jobs are plentiful, wages are strong. Spending on hone extensions and improvements appears at an all time high.

Loads are upgrading there cars, booking holidays, restaurants are busy. Coffee shops packed new businesses opening all around.

Houses selling like hot cakes and all the related activity booming.

Talk of food riots and people (not a few but millions) living like church mice seem well short of the mark.

Yes, I know I’m a bit like the Mayor of Amity but is it really that bad? And if the economy dips by one or two percent it’s hardly Armageddon is it.

[Jimbo.]

swanny71 said:

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.

What’s wrong with wanting the ignorant and reckless to suffer? Plenty hard working, prudent, locked out of the housing market people have suffered for long enough!

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 bks.

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.

Not easy, but not ‘total bks’ 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.

“Cheap(ish) rent at home…” is key, there. If you’re paying rent in full (be it for a house share, flat, whatever) and moving back in with the parents isn’t an option, you’ve little to no chance of escaping the rent trap.

[swanny71]

Jimbo. said:

“Cheap(ish) rent at home…” is key, there. If you’re paying rent in full (be it for a house share, flat, whatever) and moving back in with the parents isn’t an option, you’ve little to no chance of escaping the rent trap.

No. The key things were cheap(ish) rent at home AND working their balls off AND saving hard AND being financially prudent for a few years AND taking advantage of help offered to young first time buyers by the government.

Instead of YOLO’ing and pissing their wages against the wall whilst moaning about the government, boomers, landlords, banks, rich people etc. etc.

[johnboy1975]

swanny71 said:

Jimbo. said:

“Cheap(ish) rent at home…” is key, there. If you’re paying rent in full (be it for a house share, flat, whatever) and moving back in with the parents isn’t an option, you’ve little to no chance of escaping the rent trap.

No. The key things were cheap(ish) rent at home AND working their balls off AND saving hard AND being financially prudent for a few years AND taking advantage of help offered to young first time buyers by the government.

Instead of YOLO’ing and pissing their wages against the wall whilst moaning about the government, boomers, landlords, banks, rich people etc. etc.

Yes. Take £300-400 out of their budget (cheapish rent to parents)

Still doable? Or do the other "ands" not come into it?

[swanny71]

johnboy1975 said:

Yes. Take 300-400 out of their budget (cheapish rent to parents)

Still doable? Or do the other "ands" not come into it?

Without cheap(ish) rent it would’ve taken longer than 4 years.
Without the other “ands” it wouldn’t have happened.

[Welshbeef]

bigandclever said:

Wherever finance directors with multiple properties are barging past the plebs to hoover up the discounted produce section.

Incorrect - there wasn’t anyone else in that aisle. Probably in the office or picking up kids. I tend to time my stroll to the shop at a time I expect it not to be busy.

[Downward]

turbobloke said:

Minister 'somewhat surprised' at Bank of England's 'apocalyptic' food price warning.

https://news.sky.com/story/cost-of-living-minister...

His distanced comments come as a poll for Sky News revealed rising bills have meant one in four people have resorted to skipping meals.

Local CO OP
Roberts bread £1.60
Semi Skimmed Milk £2.50.

Thing is you learn the prices so don’t buy when the prices are higher.
I mean you feel bad if somehow your local supermarket there’s only CO OP

[okgo]

That’s a quid more than the corner shop near me in inner London for milk. Is that right?

[moles]

Denial.

Thankyou4calling said:

I can’t get my head around all the negativity and language being used in relation to the economy.

It doesn’t bear any relationship to what I observe at all.

We’ve just come out of a pandemic, I’d say most were really surprised at how resilient the UK economy has been.

Jobs are plentiful, wages are strong. Spending on hone extensions and improvements appears at an all time high.

Loads are upgrading there cars, booking holidays, restaurants are busy. Coffee shops packed new businesses opening all around.

Houses selling like hot cakes and all the related activity booming.

Talk of food riots and people (not a few but millions) living like church mice seem well short of the mark.

Yes, I know I’m a bit like the Mayor of Amity but is it really that bad? And if the economy dips by one or two percent it’s hardly Armageddon is it.

[okgo]

Doesn’t he live in Twickenham? As per my Putney comment; it’ll be irrelevant for your average resident.

[Welshbeef]

okgo said:

That’s a quid more than the corner shop near me in inner London for milk. Is that right?

Is it a 6 pint of milk?
Is it Craven or equivalent milk
Is it the cheapest basic semi skimmed?

I guess one thing for sure is for a long time framers are not paid enough to cover the costs of milk production - so it’s good coop are stepping up prices to pay the farmers more.