Inflation to hit 15%

[onthefencesitter]

www.independent.co.uk/news/business/inflation-bank-england-cost-living-b2137311.html

www.theguardian.com/business/2022/aug/03/uk-inflation-could-reach-15-by-start-of-2023-experts-say

What do you all think?

my food shop etc is already there if not higher. So I can well believe it

truss scares me. I don’t believe or want low taxes. I want decent funded services.

There will be people pushing against raising public sector pay, as they're worried that will encourage inflation. The problem is that while avoid public sector increases may curb inflation, it does so by causing enormous struggle to those facing the burden.

In terms of electricity rationing, I think the problem here in part is the shift to work from home that requires electricity. Cutting off electricity means, largely, cutting off internet. And all the people who upended their lives to work from home would be fucked.

Unless, I suppose, you did it in the middle of the night -- but then many would freeze.

@MarshaBradyo I wasn't just referring to inflationary pressures as I replied to the point that we would have been ok, the economy wasn't in great shape beforehand.

There are lots of articles about what it did to wages & our productivity crisis

Not only that, the crisis in the 70s followed a decade of prosperity. Whereas this one is after a decade of austerity. People are going into this one in a far worse state than the 70s.

Yes but I listed what I meant - interest rates included which are going to be impacted due to high inflation - up until the two crises I doubt people felt uncomfortable about productivity or even thought much about it and that would have continued

I also wouldn’t call that a crisis, I would the war and Covid though

I’m not sure if you’re joking but why Boris?

Besides I don’t think I can go through all that hyped up media attention trying to get him out again

I think what is the point of hiking up interest rates and punishing ordinary working people when the real reason prices are sky rocketing is because of massive increases in energy bills. People can only cut down their energy use by so much. Until effect measures are taken to stop the blatant profiteering that is going on then no amount of interest hikes are going to stop inflation from going up. It’s quite frightening that the Bank of England can’t see this.

15% - and the rest.

This is like 'unemployment figures', it's all manipulated. Unemployment figures 'the lowest since xyz' even though the way this is calculated is so different since 'xyz' i.e. doens't include 18-21 who have to be in education, training or employed.

Inflation based on a basket of goods and other random things. Individuals inflation is possibly way higher, this especially applies to those who are in the lower socio economic groups.

When will people wake up to the lies and manipulation?

Liz Truss is a shocking choice. I’ve never seen someone so lacking in confidence. She is like a puppet from Thunderbirds. I think she’ll lose them the next election so if that happens, I’ll be thankful!!! Low taxes now is a stupid idea and won’t help any of us. Might be the death knell of the NHS.
Inflation is v scary.. I just hope they lose the next election and we can start repairing some parts of our society.. 💔

I can believe. The tories have been in total denial about how bad the cost of living crisis will be because it all happened on their watch. Looks like it’ll be magic money tree time again.

It has not “cancelled” out the rise. NI wise we are worse off in this household than we were in March.

The rise in percentage terms is 10% extra NI. Slightly raising the NI threshold and then touting it as a tax cut is the biggest piece of financial gaslighting this tax year.

Broadly, the NI increase has been cancelled out by the threshold drop for those who earn c.£40k or less. If you earn more then you're a little worse off still.

truss scares me. I don’t believe or want low taxes. I want decent funded services.

She won’t lower taxes when the time comes. Her embarrassing u-turn yesterday shows how little she’s thought finance policy through.

Nope. I would rather have her than Rishi. My NI (tax) has just gone up by 1.25%. I haven't had a payrise so this means I am paying more tax. In the meantime, benefits are going to go up by at least 10%. It doesn't make sense to tax people more who are in work then handing that money to people who work part time or not at all. Might as well give up work and get a 10% increase in income. And Rishi caused a lot of this inflation by spunking taxpayers money on various pandemic schemes. I really don't want him as PM.

Completely agree.

It's an overdue correction. Wage increases v house price stagnation. Had to happen.

I recall saying in covid to those who were bleating that the economy had to stay closed and they on furlough that I did not wish to see any bleating or whining about interest rates/inflation/difficult times ahead. What the chuff did people expect?

Just saying.

Yes but I listed what I meant - interest rates included which are going to be impacted due to high inflation - up until the two crises I doubt people felt uncomfortable about productivity or even thought much about it and that would have continued

I'm not really sure what you are trying to say.

The productivity issue has certainly been a concern to many as have low wages.

Broadly, the NI increase has been cancelled out by the threshold drop for those who earn c.£40k or less. If you earn more then you're a little worse off still.

I agree the change is fairer now as NI disproportionately affects lower earners.

It is entirely and scarily probable that inflation will hit these scary numbers. And let’s not forget why. Locking healthy people up and paying them to do nothing while creating artificial demand in the economy by printing more money in 2 years than since the financial crisis.

The daily standing charge is a problem in particular- even if you cut energy use significantly will probably still see large bill increase

Not on a par with what we are seeing

A few mumblings now about how bad it has been

No threads on here from people worried like now. It’s just not the same level a crisis for the public

Yes, I worked out that mine only went up by about £130 a year then down by £400. Still a help for those struggling on low full time incomes.

Very true - it's not generally well understood how regressive NI is as a tax.

Truss has too many skeletons in the cupboard. We missed out on an sexcellent pm a decade or so ago due to those. I wonder if Liam now gives a Fox. How different things could have been.

Anyone who is paying nics is paying more than the last tax year because it’s equivalent to 10% more.

It’s not fair as they hiked NI by 10% then raised the threshold by a bit which high earners benefit from.

Therfore, it has led to less in peoples pockets whilst convincing everyone it’s fair and it’s more money. That’s why Truss wants to reverse it.

I agree. No one wanted to hear it though