Inflation cometh...

sleepygnome · 2021-05-26T14:05:01+00:00

Just been shopping and everything is about 20% more expensive than last week. Electricity and gas also going up a lot. Is this the start of massive monthly inflation from all the covid money-printing? If so, scary times ahead me thinks!

DynamoKev · 26/05/2021 15:15

cometh
me thinks
Are you from Shakespeare? or the King James bible?

BlatantlyNameChanged · 26/05/2021 15:27

I'm on a fixed rate for my utilities so I haven't noticed any changes there yet but I have noticed my food shopping creeping up in price, what used to be a £90 weekly shop is now closer to £110.

BigPyjamas · 26/05/2021 15:30

Certainly noticed that clothes are much more expensive this year.

Our average food shop is up too, probably around £90 last year and £110 now

TheDuchessOfBeddington · 26/05/2021 15:37

I work for a restaurant and we have had to put up our prices, as EVERYTHING has gone up in cost from gas, to wines, to fresh produce.

Not to mention furlough costs of thousands per month for most of the last year and rent payments required while the place was closed. Our lunch price has gone up £5 for the fixed price menu.

So far people seem happy to pay the extra, but there are definitely ramifications for the economy coming out of lockdown.

dancealittleclosertome · 26/05/2021 15:46

It's not necessarily because of inflation - some of it is because of Brexit. Goods that come from Europe are now more expensive because we are paying duty on them.

parietal · 26/05/2021 15:50

yes things are more expensive, but it may well be brexit and not just covid-related policies here to blame. transport costs have gone up massively because of more paperwork from Europe and higher shipping costs from the far east. So that makes lots of things more expensive.

Empressofthemundane · 26/05/2021 15:53

Yes.

Freight rates are now 4 x as expensive. Metals costs have rocketed. There is a severe shortage of electronic parts.

Billandben444 · 26/05/2021 15:55

Our breakfast last weekend in Morrison's caff was 50% more expensive than pre covid - on shiny new plates but no extra sanitising being carried out (and I don't think the piggies were from the EU).

dirtyfries · 26/05/2021 16:11

@Empressofthemundane

Yes.

Freight rates are now 4 x as expensive. Metals costs have rocketed. There is a severe shortage of electronic parts.

Yes yes to freight rates. They basically quadrupled in the space of a month late 2020. Anything arriving from Asia is impacted.

Zilla1 · 26/05/2021 16:21

As with most things economic, it's arguable but I suspect it's not COVID 'money printing' though I admire your monetarist rigour, if you're in the UK then the last time I looked, it's probably down to Brexit, freight costs and global energy markets. The last time I looked, QE seemed to be HMT's preferred approach to managing COVID fallout so inflation might be expected to be tame in the short to medium term.

Zilla1 · 26/05/2021 16:22

Eugene O'Neill?

TheKeatingFive · 26/05/2021 16:24

Well of course. Brexit. Lockdowns. Hella expensive.

LaLaLoopsi · 26/05/2021 16:27

We went out for dinner the other day -2 adults and 2 under 5

It was £80!

LaLaLoopsi · 26/05/2021 16:28

And we don't drink so no alcohol!

Zilla1 · 26/05/2021 16:34

For restaurants, pubs and hospitality, I expect it's restaurants reviewing their revenue model based on changes to cost base, social distancing affecting the number of covers and so on. I could be naive but don't think expansion of the monetary supply is needed in addition to explain price increases in hospitality. For travel, I expect supply and demand for UK holidays and reduced capacity for flights when things open up further will impact on pricing.

BlackPetunia · 26/05/2021 16:35

yes, its very noticeable.

bp300 · 26/05/2021 16:41

@Zilla1

As with most things economic, it's arguable but I suspect it's not COVID 'money printing' though I admire your monetarist rigour, if you're in the UK then the last time I looked, it's probably down to Brexit, freight costs and global energy markets. The last time I looked, QE seemed to be HMT's preferred approach to managing COVID fallout so inflation might be expected to be tame in the short to medium term.

It's definitely not Brexit because the same thing is happening in USA and other countries totally unrelated to the EU. COVID without the money printing would have been deflationary.

FromEden · 26/05/2021 16:44

It's happening here in the US too. Grocery prices are way more expensive, same with petrol, meals out etc. It's not brexit it's the result of covid lockdowns/stimulus

TheGoogleMum · 26/05/2021 16:48

I've noticed eating out seems more expensive even though its been outdoors and limited menu. I think food shopping has got more expensive too and we've just done a new energy fix which is more than we were paying but lookaftermybills insists is a better deal :/

ICanSmellSummerComing · 26/05/2021 16:58

I've not noticed, pre brexit and covid it was monumentally expensive to eat out as family of four.
I've not noticed ocado increase either

Zilla1 · 26/05/2021 18:36

I appreciate price increases have happened outside the UK though the OP suggested COVID 'money printing' in their OP which I don't agree was the sole or even main factor. In the UK, I think Brexit has contributed to price rises for 'shopping' for the reasons PPs have said. I also think the rise in freight costs has contributed, global energy markets even in those nations that haven't printed money (presumably there are some). I suppose for hospitality, the reasons for price increases include non-'COVID money printing' factors such as the effects of social distancing on demand/supply (or reducing the number of covers in restaurants and the number of customers in pubs if you will). How can you be certain Brexit is not a contributing factor to UK price rises for groceries just because prices have increased in USA swhen the magnitude of the price increases, the nature of the economy and the nature and size of the stimulus all differ across different countries?

Guacamole001 · 24/08/2021 10:59

Sorry slightly old thread. Eating a small lunch at the local cafe definitely costs more. However owing to all the months hospitality was completely shut I am happy to support them in any price hikes.

Supermarkets are another matter though.

SchrodingersImmigrant · 24/08/2021 11:07

@Guacamole001

Sorry slightly old thread. Eating a small lunch at the local cafe definitely costs more. However owing to all the months hospitality was completely shut I am happy to support them in any price hikes.

Supermarkets are another matter though.

The goods prices have gone up. It's nkt just covering the covid months loses. All food supplies have gone up and it doesn't matter whether it's a cafe or a supermarket, unfortunately.

Borderingonmadness · 24/08/2021 11:18

Some of the stuff i buy for my hobby has doubled in price since Brexit, was fine last year, so not CV related, it just seems like everything that comes through europe.
Could by a groupset for 640 last autumn, now 1100, in Germany the same thing is 730 but no longer ship to UK :(

Haulage costs have gone up as more drivers have left the UK to return to the EU or as my partners friend told the the other day "we told them to F off and they have"