Inflation - when is this going to end?

[BrianW]

It's very hard to compare eras. In the 70s, for example, income tax was much higher. I can't remember whether I was paying 33% or 35% but it was on a below-average wage. NI on the other hand, was lower than it is now. There were plenty of jobs, but pay levels were generally shite. There was really only a limited difference between being poor and being well-off. The latter, if doing really well, would have a nice car and a nice house, but their multiple of income above (say) a low-level clerk was not all that great. To put it another way, society, though not equal, was much more equal than it is now.

The major benefit of living back then was that public services, especially the NHS, actually worked! You might not have a pot to piss in but if you needed a GP you could see one that day. Imagine that!

The bottom line is this: If you are used to a certain standard of living any decline hurts. You may not have the strategies to cope. If you took King Charles and put him in a five-bedroom detached in Alderley Edge with only a part-time cleaner as a servant, it would be one hell of a shock to him. The fact that most of us would see this as luxury is irrelevant - or it would be to him.

 

[hampshireblue]

No mate we've already been enlightened it was almost 25% in 1975. inflation rates we're talking about God knows what the bank rates were.

A simple Google search will show me to be correct. I replied to this:

Interest rates reached 18% in the 80s.
Inflation in 1975 however reached 25%.

 

[i kne albert davy]

A simple Google search will show me to be correct. I replied to this:

Interest rates reached 18% in the 80s.
Inflation in 1975 however reached 25%.

I don't doubt you for one second however this being the inflation thread it was the rate of inflation we were discussing rather than the bank interest rate.

 

[mancityvstoke]

1975 bank rates were around 12%

A terraced house in Gorton was fuck all

average prices ?

1975​

The cost of home ownership continued to rise at lightning speed. By the end of the decade, the average house price had quadrupled to £19,925.

Avocado became the must-have colour for bathroom suites. And bathrooms became the place to ride your exercise bike.

Wages were fuck all though too. Times have always been tough for the poor.

I certainly remember being cold and not much food in the house and no treats. Never holidays abroad ...ever.

In the 60's hardly anyone had a car and streets were empty of parked cars. Look at today and streets are chaos.

 

[KS55]

I don’t disagree it should never have been given to the public to decide. The problem, as I see it, was remain campaign got sucked into leaves orbit. Fighting on the grounds of cost of membership rather than selling a simple message of what EU membership gave us. That is remains fault, they lost a vote they should have won at a canter, rather leave who stole the result, a real smash and grab.

Similar to Trumps Maga candidates who lost by fighting the wrong fight.

 

[Kompany Car]

It's very hard to compare eras. In the 70s, for example, income tax was much higher. I can't remember whether I was paying 33% or 35% but it was on a below-average wage. NI on the other hand, was lower than it is now. There were plenty of jobs, but pay levels were generally shite. There was really only a limited difference between being poor and being well-off. The latter, if doing really well, would have a nice car and a nice house, but their multiple of income above (say) a low-level clerk was not all that great. To put it another way, society, though not equal, was much more equal than it is now.

The major benefit of living back then was that public services, especially the NHS, actually worked! You might not have a pot to piss in but if you needed a GP you could see one that day. Imagine that!

The bottom line is this: If you are used to a certain standard of living any decline hurts. You may not have the strategies to cope. If you took King Charles and put him in a five-bedroom detached in Alderley Edge with only a part-time cleaner as a servant, it would be one hell of a shock to him. The fact that most of us would see this as luxury is irrelevant - or it would be to him.

Good post. One of the key things these days is how much debt the average family has relative to income by comparison to the 1970s. Whilst the graph below doesn't go back that far you can see in the late 80s it was much lower than now and it has risen substantially from 2000 onwards.

The group most exposed are those in the 18 to 44 age group, where they are likely to have very little equity in any property they own and are relying on revolving credit for significant purchases.
The big reset that people seem to think will make things more equal, unfortunately I think will be more of a reset back to the 1860s rather than the 1960s.

 

[tregyblue61]

Got an email from EE telling how much of a valued customer I am, how they are proud to be the UK's no.1 etc blah blah blah.... and, for that, we are putting your price plan up by 14.4% (£6.52 a month).

I've been complaining for years to the regulator, MP's etc that, when I agree to a 2 year deal for X amount a month, I should pay that amount for the length of the contract.

EE, and others, are allowed to put on a RPI rate PLUS a 3.9% increase every year. I can get out and move to another operator but will have the same problem with them.

Motor Insurance is fooking scandalous at the moment: 82% increase this year. And that was with a slight reduction. I have shopped around.


Rip-Off Britain is alive and and doing very well in 2023!

 

[Scottyboi]

Got an email from EE telling how much of a valued customer I am, how they are proud to be the UK's no.1 etc blah blah blah.... and, for that, we are putting your price plan up by 14.4% (£6.52 a month).

I've been complaining for years to the regulator, MP's etc that, when I agree to a 2 year deal for X amount a month, I should pay that amount for the length of the contract.

EE, and others, are allowed to put on a RPI rate PLUS a 3.9% increase every year. I can get out and move to another operator but will have the same problem with them.

Motor Insurance is fooking scandalous at the moment: 82% increase this year. And that was with a slight reduction. I have shopped around.


Rip-Off Britain is alive and and doing very well in 2023!

I think it's great, can leave contract early just go on topcashback get your new provider and onto a new deal. Did you use a comparison website for your insurance I always pay roughly the same amount changing providers each year.

 

[tregyblue61]

I think it's great, can leave contract early just go on topcashback get your new provider and onto a new deal. Did you use a comparison website for your insurance I always pay roughly the same amount changing providers each year.

Used a few site but couldn't get it any cheaper. I know people that have the same issue with even bigger rises.

 

[Two Gun Bob]

I actually think our car insurance appears reasonable in comparison with years gone bye. Just paid £375 fully comprehensive with protected and legal with 9 years no claims (19yrs) but they only go up to 9.

We just use the main comparison sites IE Go Compare and Compare The Meerkat. Go compare gave us back a £20 voucher for Lidll so effectively £355. This was with More Than as our last insurer Tesco wanted to triple the auntie. Loyalty counts for nothing these days, so we have to constantly retun to market to find any assemblance of value.

It's the Hovis at £1.40 I'm worried about!