business

UK inflation hits 40-year high

11 Comments

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11 Comments
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The (present) energy companies are seizing whatever money they can from their increasingly impoverished customers.

Though, I guess it’s the only way to avoid bankruptcy.

However, shady tactics like overcharging customers and merging undisclosed bills isn’t the way businesses should operate…

1 ( +1 / -0 )

another evidence that antirussian sanctions "works"...but not for UK economy.

Albion is like sinking ship.little by little sinking more and more deep.

0 ( +3 / -3 )

windfall profits of energy companies benefiting from high oil and gas prices.

“Windfall profits”?

I expect that hammering energy companies with extra taxes will contribute to yet higher energy prices.

Madness.

0 ( +0 / -0 )

Oh dear, is Operation Isolate Russia beginning to cost more than just taking the time to put a Ukraine flag on your FB profile?

-1 ( +1 / -2 )

This was the trend before, Ukraine just made it worse. Stop giving Zelenskyy money and arms might help

-2 ( +1 / -3 )

There is real suffering as a result of rising costs, but at present only the poorest are feeling it. Media reporting has been typically melodramatic.

The clock is however ticking on support for Ukraine. Frozen grannies and hungry kids will see people turn on their governments for choosing sanctions over their own citizens.

The UK and Spanish energy markets are less exposed than the French and German ones*, but prices are still going to go up. The UK is having to deal with Ukraine/sanctions fallout on top of the double whammy of economic damage caused by the pandemic response and by Brexit.

*French nuclear plants have corrosion issues, whilst Germany is highly reliant on Russian energy.

There are shortages of goods and food, shortages of labour, and higher prices. The NI protocol collapsing and delayed border restrictions will eventually make things worse still. Tax revenues have been seriously impacted by both Brexit and Covid, which doesn't help.

If you don't have a lot of cash, things are going to be difficult. Food banks are supporting a lot of people. There are likely to be energy subsidies for the poorest before winter. For the majority, it will just mean a bit less cash in the bank.

Inflation hits the poor, higher interest rates hit the middle classes. Many people in the UK have mortgages. Rising interest rates - the favoured government 'solution' to inflation - will cause them much more of a problem. And increasing interest rates probably won't cap inflation stemming from war/deglobalisation.

There is some spare capacity. Lots of people in the UK buy homes that are bigger than they need, so they can downsize. They might want to do that now whilst they can still bag a relatively low interest mortgage.

OPEC may well ramp up production and take the heat off. They were facing nations phasing out fossil fuel. Russia has done them a favour - they can bank serious cash replacing Russian supplies.

0 ( +0 / -0 )

Recently, there has been a made rush to

buy property in the UK and foolishly people are buying at market tops meanwhile interest rates are edging up.

A lot of people are going to lose their homes

0 ( +0 / -0 )

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