Has WFH contributed to inflation?

[plumcake2924]

Middle classes saving money from commuting, childcare and daily expenses of going to work + pent up demand from Covid now being spent in the economy.

Apart from increase in energy costs and Brexit. What else has caused rise in inflation?

Liz Truss.

I mean energy is a huge one because it impacts literally everything else as everything you buy or use requires energy to make or use it. Impact of war in UkraIne has therefore been v significant and has also disrupted the global wheat trade which puts upwards pressure on food staples.

Yeh that is true. I also wonder how much increase in the minimum wage has taken its toll on inflation?

Yeh that is true. I also wonder how much increase in the minimum wage has taken its toll on inflation?

Why do you wonder that?

Profiteering

Well people on minimum wage, supermarket workers etc will lead to cost push inflation.

So your solution is to restrict the buying power of society's poorest to curb inflation?

Really struggling to see the point of this thread I'm sorry.

The energy crisis and the disgusting levels of price gouging and profiteering by the big companies caused it.

Not someone sat at home two days a week, or someone having their minimum wage raised so they can afford to, yknow, live?

What is your YABU? Or are you just trying (very poorly) to be incendiary

Climate change. Cost of foodstuffs is going up, grown here and elsewhere.
(as well as the other things above - Ukraine, energy, Truss and profiteering).

How?

Had a really cheap 12 months up until November being able to ship things into the country from overseas. That cost has risen by thousands a container due to the route around the Cape of Good Hope instead of the Suez

'So your solution is to restrict the buying power of society's poorest to curb inflation?

Really struggling to see the point of this thread I'm sorry.

The energy crisis and the disgusting levels of price gouging and profiteering by the big companies caused it.

Not someone sat at home two days a week, or someone having their minimum wage raised so they can afford to, yknow, live?'

I have not said anything of the like. I am asking for factual economic reasons for inflation.

The rise in minimum wage is not driving inflation, already rampant inflation necessitated it.

Hope that helps.

Looking factual economic reasons for inflation on a parents commenting forum?

Highly doubt mumsnet is what google threw up in the first 10 pages. And you asked as a leading question.

there are multiple reasons, Brexit, Covid, war, supply chain issues, fuel prices, nordstream 2 blowing up (the us) means European energy costs loads more.

wfh is the least of it.

The COVID response, and the insane amounts of money printing to pay for the COVID response, is what got us most of the way there. Monetary inflation.

The response to Russia & Ukraine was the other key part, as it made our fuel more expensive.

Increasing the minimum wage will also directly contribute to inflation. You're increasing the money paid for the same thing but not as a response to lack of supply. Be it a job at McDonalds or a kit kat, the principle is the same.

Immediately after Covid there was a supply shortage and pent up demand, with savings rates higher than previously. But that was because shops were shut and people were cautious given uncertainty of what would happen. A bit may have been saved WFH but not the majority - more lots of holidays, socialising and deferred big purchases (eg cars, moving house etc).

That was a short term blip.

The killer was the war in Ukraine straight after pushing up prices of energy and food.

Inflation is always at risk of spiralling as high prices drive wage demands up. This was coupled with staff shortages.

CEO pay grew 9.5% in 2023 , about the same as the living wage.

But it's worth noting that the wealth of the Sunday Times rich list (250 families) increased £40bn between 2020 and 2023. That's enough to end world hunger.