Is everyone going to be affected by the cost of living?

[Southerngal5]

Ie all sectors of society not just the ones who are barely getting by currently & will now pushed into poverty...
The squeezed middle will be affected & will likely have to do without luxuries they once took for granted... I'm finding it quite scary to be honest.. I know I shouldn't as we're quite comfortable & can afford our mortgage & bills but we won't have many of the "nice" things we had planned for the dc... Please don't flame me as I know there are millions worse off but I can't see prices coming down in the foreseeable future...

It just seems really strange. Either people are in denial, or there are plenty of people about with money. I guess that it's a bit of both. I certainly think that wealth has become more unevenly distributed than it was before. All those extra lockdown pounds are being spent and it's driving inflation higher. Makes things worse for people without.

@ufucoffee

No, not everyone. Those people who earn loads and have loads of disposable income won't notice too much.

We have quite a lot of disposable income but we will notice I can tell you.

Bills increasing will need to be paid so the money we spend on eating out, going to the hairdressers etc will need to decrease. So times that by 1000 families in my small town, that will be restaurants and hairdressers going out of business.

@emuloc yes that and the fact that the impact of the energy prices going up has not been felt yet. Some people will spend until they are broke , perhaps some of these people are.

I'm not like that and like to squirrel away cash for a rainy day which is coming soon.

As I said electricity is my only household bill I cannot opt out of...I will notice even though we have a high disposable income. It's my highest bill...

We are in a position to afford the rises at present, as we have paid off the mortgage. However, having been here before in the 80s and 90s, I am going to rein in the shopping bills; substitute cheaper things, and ram the oven full with batch cooking at a weekend. We'll turn the heating down a couple of degrees too. Given our ages, we have everything we need, and most of what we want (and ds is a working adult), so we can cope, and the expensive child rearing/education/university years are behind us.

So gas and electricity have gone up and are going up more, food is getting more expensive, what else is increasing in price?

@CrimbleCrumble1 mortgage interest rates and therefore rents also...petrol/diesel...pretty much everything I think

I think places are still busy because most people haven't been affected hard YET.

I am looking ahead at the NI hike plus all the predicted increases for food and utilities so it won't be as painful when it hits but a lot of people won't change their habits until it affects them.

@CrimbleCrumble1

So gas and electricity have gone up and are going up more, food is getting more expensive, what else is increasing in price?

Petrol and NI hike

@CrimbleCrumble1

So gas and electricity have gone up and are going up more, food is getting more expensive, what else is increasing in price?

Petrol & diesel... As I said above my local haidressers have increased prices to cover utility costs even though the business is much quiter... Some after school activities will increase as the halls will need to increase rental costs to cover electricity.. Interest rates also rising.... Bloody depressing...

@CrimbleCrumble1

So gas and electricity have gone up and are going up more, food is getting more expensive, what else is increasing in price?

Train fares going up.

Bus fares seem expensive round here. Unsure if they are rising though. Just in general.

@Stuffin

I think places are still busy because most people haven't been affected hard YET.

I am looking ahead at the NI hike plus all the predicted increases for food and utilities so it won't be as painful when it hits but a lot of people won't change their habits until it affects them.

A lot will still be able to afford some socialising just not as often e.g. one weekend out a month instead of 3. We still have a weekend away booked, we went out for a party last night, and will be taking DS out to do something next weekend weather dependant on what we do.

We can absorb the increase in gas and electricity and living costs by putting less in the savings so could in theory not sacrifices anything. Our mortgage is fixed for the next five years so protected from that and we don't intend taking out any further finance.

For us it's not really a cost of living crisis more a annoyance in response to his comments about pay restraint. If our pay increases in line with inflation we wouldn't change anything

There's also the uncertainty ré ukraine & what kind of knock on effect it will have....

The self deprivation brought upon us by Covid lockdowns has conditioned us for this to some extent. I don't earn much and even I managed to save a fair amount of money. I would be naive to think that I am in the minority. At this stage, I think there are posters who are annoyed at having to spend their nest egg and very, very few who are already feeling the pinch.

I'll be happy to see the end of the 'treat mentality'. I'm talking about cakes-by-post and fancy foodie subscriptions - I always thought that you should bake your own or go without (if I can then anyone can). Hair colouring ditto.

I think the Tories will be crapping themselves that they have made it culturally impossible to raise interest rates by even a relatively modest amount. That IS what is required as a priority measure and it would raise meaningful revenue. However, it would mean proper sacrifices on the part of many who are mortgaged to the max. That's why they are pushing for employer's to raise wages, so that they can sneak it in on the coattails of the latter. Interest rates are far too low by several multiples. it's all a mess.

@Soffit

I think the Tories will be crapping themselves that they have made it culturally impossible to raise interest rates by even a relatively modest amount. That IS what is required as a priority measure and it would raise meaningful revenue. However, it would mean proper sacrifices on the part of many who are mortgaged to the max. That's why they are pushing for employer's to raise wages, so that they can sneak it in on the coattails of the latter. Interest rates are far too low by several multiples. it's all a mess.

Is it tho that depends if you think you should be able to make money off money. I would rather have low interest rates, rising wages and rising assets values. To make that feasible you also need to have low government debit and low social costs which we seem in capable of as a country.

Rising inflation only eats into your back pocket if you have large cash reserves

I don't think the wages will rise much though

I have no mortgage so I would prefer higher interest rates tbh. I think it may make housing more affordable as low interest rates have partly caused the rise

Of course,.the impact will be awful for some but a far wider spectrum of people will be hit one way or another.

I was thinking through the expenses we will trim down and feel sad because it will all affect local family owned businesses- the nail salon, the local bookshop, local restaurants and cafes. Presumably all these businesses will also be facing rising costs

@woodhill

I don't think the wages will rise much though

I have no mortgage so I would prefer higher interest rates tbh. I think it may make housing more affordable as low interest rates have partly caused the rise

It going to be interesting for sure. With so low unemployment and availability of jobs I can see companies having to raise wages to attract staff especially in shortage areas.

I don't think a rise in interest rates of the magnitude governments can stomach (considering the COVID debt) will really restrain prices or cause them to fall. Even interest rates doubling from now adds £200 to my mortgage not exactly bank breaking when you factor in pay rises over the next 5 years when remortgage is due.

I think the next election could be won on the basis of lowering taxes and lowering public spending which isn't good for those paying the price of rising inflation

My nearest Waitrose is usually really busy on a Sunday afternoon but today there was hardly anyone there. But Lidl, just over the road from Waitrose, was rammed. Looks like the cutbacks have already started.

Most, but not all (I doubt the truly rich will notice much).

But people will be affected differently, for instance some of us will have to eat out less but some will literally have to eat less, full stop.

I'm not going to moan if I can't have lunch out when I know a few people who will actually have to skip meals.

1/3 rent
1/3 own outright
1/3 are mortgaged.

So interest rate rises perhaps affect fewer than expected in a mortgage sense.

That’s not me belittling what would be catastrophic for some.

@woodhill

I don't think the wages will rise much though

I have no mortgage so I would prefer higher interest rates tbh. I think it may make housing more affordable as low interest rates have partly caused the rise

Make housing more affordable for who? High interest rates won't benefit first time buyers as most need mortgages. It will only make housing affordable for cash buyers and investors.