Cost of living squeeze in 2022, 23 & 24 (Vol. 2)
Discussion
Thankyou4calling said:
I’m gonna put it out there that the mother of all recessions we were in for has turned out to be nothing of the sort.
People kept saying wait til this wait til then and the dates all came and went til we are left with an economy that’s flat lined and not been in recession at all.
Certainly we have inflation but even that hasn’t got close to the 18% many expert thinktanks predicted.
We spend more on some things yes but there’s been no mass repossessed houses, people haven’t had there power cut off and others aren’t starving.
It all seems like another example of mass hysteria that never materialised for most and I’m conscious that for some times are hard.
But haven’t they always been?
I think the hit has been hard at the bottom. But the white Evoque bulge bracket that were going to be punished (tannhauser/TB etc) have been fine as you say. People kept saying wait til this wait til then and the dates all came and went til we are left with an economy that’s flat lined and not been in recession at all.
Certainly we have inflation but even that hasn’t got close to the 18% many expert thinktanks predicted.
We spend more on some things yes but there’s been no mass repossessed houses, people haven’t had there power cut off and others aren’t starving.
It all seems like another example of mass hysteria that never materialised for most and I’m conscious that for some times are hard.
But haven’t they always been?
House prices seem to even be back rising from some chart I just saw from Halifax?!
Thankyou4calling said:
I’m gonna put it out there that the mother of all recessions we were in for has turned out to be nothing of the sort.
People kept saying wait til this wait til then and the dates all came and went til we are left with an economy that’s flat lined and not been in recession at all.
Certainly we have inflation but even that hasn’t got close to the 18% many expert thinktanks predicted.
We spend more on some things yes but there’s been no mass repossessed houses, people haven’t had there power cut off and others aren’t starving.
It all seems like another example of mass hysteria that never materialised for most and I’m conscious that for some times are hard.
But haven’t they always been?
Ah, just you wait. People kept saying wait til this wait til then and the dates all came and went til we are left with an economy that’s flat lined and not been in recession at all.
Certainly we have inflation but even that hasn’t got close to the 18% many expert thinktanks predicted.
We spend more on some things yes but there’s been no mass repossessed houses, people haven’t had there power cut off and others aren’t starving.
It all seems like another example of mass hysteria that never materialised for most and I’m conscious that for some times are hard.
But haven’t they always been?
But seriously, whilst we haven't seen anything too dramatic yet, I expect the cost of debt to be a significant drag over the next few years.
princeperch said:
I took one of those. Maxed my over payments though. Meant if anything happened I could drop payments to the bare minimum. Anyway coming to the end of my 5 year fix, and will just pay it off. So they do work, but make sure you over pay. 
I see that "transient" inflation is on the up again this month.....
Meanwhile on BBC radio 4 this morning, we were treated to:-
What they don't factor in is that saddling the indebted with massive increases in rates punishes those who want to keep a roof over their head.
The time for normalising interest rates was BEFORE they indebted a generation buying houses at ludicrous multiples of earnings.
Meanwhile on BBC radio 4 this morning, we were treated to:-
- low rates are bad because they benefit only the rich and speculators.
- higher rates are good because they encourage investment and discourage speculation.
- low investment is the reason why we are poorer.
What they don't factor in is that saddling the indebted with massive increases in rates punishes those who want to keep a roof over their head.
The time for normalising interest rates was BEFORE they indebted a generation buying houses at ludicrous multiples of earnings.
ant1973 said:
I see that "transient" inflation is on the up again this month.....
Meanwhile on BBC radio 4 this morning, we were treated to:-
What they don't factor in is that saddling the indebted with massive increases in rates punishes those who want to keep a roof over their head.
The time for normalising interest rates was BEFORE they indebted a generation buying houses at ludicrous multiples of earnings.
It's the BBC, only to be expected.Meanwhile on BBC radio 4 this morning, we were treated to:-
- low rates are bad because they benefit only the rich and speculators.
- higher rates are good because they encourage investment and discourage speculation.
- low investment is the reason why we are poorer.
What they don't factor in is that saddling the indebted with massive increases in rates punishes those who want to keep a roof over their head.
The time for normalising interest rates was BEFORE they indebted a generation buying houses at ludicrous multiples of earnings.
isaldiri said:
ant1973 said:
The time for normalising interest rates was BEFORE they indebted a generation buying houses at ludicrous multiples of earnings.
The generation buying houses at ludicrous multiples of earnings already started to happen prior to very low interest rates though......turbobloke said:
ant1973 said:
I see that "transient" inflation is on the up again this month.....
Meanwhile on BBC radio 4 this morning, we were treated to:-
What they don't factor in is that saddling the indebted with massive increases in rates punishes those who want to keep a roof over their head.
The time for normalising interest rates was BEFORE they indebted a generation buying houses at ludicrous multiples of earnings.
It's the BBC, only to be expected.Meanwhile on BBC radio 4 this morning, we were treated to:-
- low rates are bad because they benefit only the rich and speculators.
- higher rates are good because they encourage investment and discourage speculation.
- low investment is the reason why we are poorer.
What they don't factor in is that saddling the indebted with massive increases in rates punishes those who want to keep a roof over their head.
The time for normalising interest rates was BEFORE they indebted a generation buying houses at ludicrous multiples of earnings.
You can imagine.
Saweep said:
Has inflation caught up with money supply increases during covid yet? Or surpassed it?
BOE says 18% since 2019.
I'm convinced it's 30%+.
That's a banned topic.BOE says 18% since 2019.
I'm convinced it's 30%+.
It's all Putin...
Are you suggesting that stoking demand by flooding the system with free cash at the time of a supply crunch might create inflation?
Heretic!
Looking like an inflationary cycle developing as rises in input costs are producing large price rises in the services sector, so even with energy costs falling back the overall rate is rising again.
Part of it is food prices (18.2% rise!) , but even excluding variable items like food core inflation rose from 5.8 to 6.2%.
Part of it is food prices (18.2% rise!) , but even excluding variable items like food core inflation rose from 5.8 to 6.2%.
JagLover said:
Looking like an inflationary cycle developing as rises in input costs are producing large price rises in the services sector, so even with energy costs falling back the overall rate is rising again.
Part of it is food prices (18.2% rise!) , but even excluding variable items like food core inflation rose from 5.8 to 6.2%.
It's more that last month was a slightly unexpected dip in prices overall whether core or not. core inflation has been reasonably sticky ~6% for pretty much a year ie more or less +0.5% MoM. Part of it is food prices (18.2% rise!) , but even excluding variable items like food core inflation rose from 5.8 to 6.2%.
JagLover said:
Looking like an inflationary cycle developing as rises in input costs are producing large price rises in the services sector, so even with energy costs falling back the overall rate is rising again.
Part of it is food prices (18.2% rise!) , but even excluding variable items like food core inflation rose from 5.8 to 6.2%.
Yup. Just put my fees up as well. And I will be increasing staff salaries by another 10% this year. Part of it is food prices (18.2% rise!) , but even excluding variable items like food core inflation rose from 5.8 to 6.2%.
When the BoE can exercise control over inflation, I will stop increasing what I charge.
Until then, they can FO with their pleas for restraint.
ant1973 said:
JagLover said:
Looking like an inflationary cycle developing as rises in input costs are producing large price rises in the services sector, so even with energy costs falling back the overall rate is rising again.
Part of it is food prices (18.2% rise!) , but even excluding variable items like food core inflation rose from 5.8 to 6.2%.
Yup. Just put my fees up as well. And I will be increasing staff salaries by another 10% this year. Part of it is food prices (18.2% rise!) , but even excluding variable items like food core inflation rose from 5.8 to 6.2%.
When the BoE can exercise control over inflation, I will stop increasing what I charge.
Until then, they can FO with their pleas for restraint.
I fear however, that that's that for the time being...I just can't see clients being able to put their costs up too...again!
ant1973 said:
Yup. Just put my fees up as well. And I will be increasing staff salaries by another 10% this year.
When the BoE can exercise control over inflation, I will stop increasing what I charge.
Until then, they can FO with their pleas for restraint.
Somehow it seems slightly unlikely that when the BoE was exercising control over inflation (whether intentionally or not) prior to 2021 you were unwilling to stop increasing what you charged..... When the BoE can exercise control over inflation, I will stop increasing what I charge.
Until then, they can FO with their pleas for restraint.
isaldiri said:
ant1973 said:
Yup. Just put my fees up as well. And I will be increasing staff salaries by another 10% this year.
When the BoE can exercise control over inflation, I will stop increasing what I charge.
Until then, they can FO with their pleas for restraint.
Somehow it seems slightly unlikely that when the BoE was exercising control over inflation (whether intentionally or not) prior to 2021 you were unwilling to stop increasing what you charged..... When the BoE can exercise control over inflation, I will stop increasing what I charge.
Until then, they can FO with their pleas for restraint.
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