Inflation - when is this going to end?

[Johnny Mars Bar]

Record gas prices again today after the Ruskies cut more supply to Germany.

McDonald's hiking prices by 20% across some product lines (I know, not an essential purchase but it is actually a useful measure of inflation - the 'Global Big Mac Index' is a thing in economics).

No sign of petrol and diesel prices coming down any time soon.

Stuff in supermarkets getting more expensive by the day.

A completely inept government.

The world on the precipice of a Third World War and climate catastrophe.

What does everyone think is the moist likely medium term outcome over the next say year or two?

And me and the mrs are relatively lucky - two reasonable incomes, no kids, not loads of debt. I can't imagine how hard it must be at the moment for single parents with kids on low incomes etc.

But it's fucking mental and I am starting to get quite worried.

 

[Onholiday(somemightsay)]

Record gas prices again today after the Ruskies cut more supply to Germany.

McDonald's hiking prices by 20% across some product lines (I know, not an essential purchase but it is actually a useful measure of inflation - the 'Global Big Mac Index' is a thing in economics).

No sign of petrol and diesel prices coming down any time soon.

Stuff in supermarkets getting more expensive by the day.

A completely inept government.

The world on the precipice of a Third World War and climate catastrophe.

What does everyone think is the moist likely medium term outcome over the next say year or two?

And me and the mrs are relatively lucky - two reasonable incomes, no kids, not loads of debt. I can't imagine how hard it must be at the moment for single parents with kids on low incomes etc.

But it's fucking mental and I am starting to get quite worried.

And we've still not got a fucking left back!?!

 

[Kompany Car]

With the exception of fuel, prices are unlikely to fall (they tend to be sticky), but the rate of inflation i.e. how quickly prices are rising, is predicted to fall back to around 2-3% late next year.
My guess is people will still be feeling the effects of this in 5 to 10yrs time particularly if we end up in a recession.

 

[Uncle Wally One Ball]

Nothing will start to remotely improve so long as this war in Ukraine is ongoing. Putin has got the world by the balls because of the fuel

 

[Johnny Mars Bar]

Nothing will start to remotely improve so long as this war in Ukraine is ongoing. Putin has got the world by the balls because of the fuel

That's my feeling too.

It's not ideal but there has to be an argument for restarting fracking, even if in just the short to medium term?

But I'm no energy expert and am sure it isn't as simple as just turning the machines on again!

 

[Mr Kobayashi]

That's my feeling too.

It's not ideal but there has to be an argument for restarting fracking, even if in just the short to medium term?

But I'm no energy expert and am sure it isn't as simple as just turning the machines on again!

How's about no. It brings more problems than it solves.

 

[blueparrot]

That's my feeling too.

It's not ideal but there has to be an argument for restarting fracking, even if in just the short to medium term?

But I'm no energy expert and am sure it isn't as simple as just turning the machines on again!

It may be being forced on us quicker than we 'd like, but we needed a big reset on how we provide the worlds energy. Maybe now is an opportunity as much as a crisis, not by fracking though.

 

[abu13]

We're all fucked.

 

[Kompany Car]

That's my feeling too.

It's not ideal but there has to be an argument for restarting fracking, even if in just the short to medium term?

But I'm no energy expert and am sure it isn't as simple as just turning the machines on again!

If you are going to do that you might as well start reopening the pits and extracting coal. From a global warming point of view its just adding to the problem.
Just invest in renewables and energy storage plus a bit of nuclear and maybe just maybe for a bit of short term pain we can get some serious long term gain which will help the next generation.

 

[The Light Was Yellow Sir]

We are 155 out of 165 countries in terms of fuel price expense. The 4 cheapest are Venezuela, Syria, Libya and Iran, who all have something in common!

In 2008, oil hit £133 a barrel and petrol was £1.19 per litre. In April 2020, far a short while at least, oil was actually a negative price and our petrol cost £1.19 per litre. Somebody is making a fortune, and it’s not the general public…..

By 2021, EV’s made up almost 20% of new registrations with over 1.25M of hybrids and EV’s on the roads. You’d imagine that would impact demand somewhat and thus negatively affect the price. UK government takes 29% of fuel price, in duty, with 20% VAT on top. So, if it costs £100 to fill up, over £43 goes to the government.

High fuel prices feed into everything we buy, thus are a major contributor to inflation and a real ‘passed on’ cut would surely help? If the loss of cash is deemed to large, there’s other things they could do with the cash, like massively invest in public transport and make it much, much cheaper, as many European countries are doing.

Obviously, they’ll do none of the above and give a tax cut to millions of people who don’t really need it and likely won’t be in any rush to spend it!