Inflation - when is this going to end?

[tommybooth]

On the plus side for me is my ISA might be up to 3.5 to 4 next year. No more 0.4 shit.

 

[SilverFox2]

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.

Surprised your petrol prices are still rising.
Here in Spain petrol and diesel prices have gone down almost day by day in the last week or so from a high 1. 84 euros per litre to 1.67 euros per litre and falling. This is the pump price so our Gov 20 cents per litre discount is applied on this price ie we pay 20 cents less per litre.
This may be a temporary trend but a welcome one in this inflationary spiral.

 

[Kompany Car]

As interest rates are increased, consumers tend to save as returns from savings are higher. They also spend less on things which are unnecessary ....With less disposable income being spent as a result of the increase in the interest rate, the economy slows and inflation decreases.
It's the best way to combat (what could become) spiraling inflation.
None of us want that.

That principle needs to be coupled with the other part of Keynesian economics which, under these circumstances should be for the government to invest in infrastructure and technology to allow business to grow in the longer term and protect against against large scale job losses. It’s pretty easy to see what infrastructure we need as it’s energy that’s the driver.
Without that you end up in the 1970s (from a music point of view that may be a positive), where we had “stagflation”.
But any investment needs to be done in a careful and controlled way. Overcorrect by trying to prevent all job losses and getting back to normal as fast as possible, you risk lengthening the recession or worst case causing a major depression akin to the 1930s.

Bottom line is, it’s going to be painful to many either way around, people will lose their jobs and houses. But it’s about making that pain as short as possible without damaging the economy in the longer term.

 

[FantasyIreland]

Surprised your petrol prices are still rising.
Here in Spain petrol and diesel prices have gone down almost day by day in the last week or so from a high 1. 84 euros per litre to 1.67 euros per litre and falling. This is the pump price so our Gov 20 cents per litre discount is applied on this price ie we pay 20 cents less per litre.
This may be a temporary trend but a welcome one in this inflationary spiral.

Our Govt are self serving thieves.

 

[ell]

Surprised your petrol prices are still rising.
Here in Spain petrol and diesel prices have gone down almost day by day in the last week or so from a high 1. 84 euros per litre to 1.67 euros per litre and falling. This is the pump price so our Gov 20 cents per litre discount is applied on this price ie we pay 20 cents less per litre.
This may be a temporary trend but a welcome one in this inflationary spiral.

Theyve been falling recently, touched 2 quid a litre at peak but I paid 1.55 on wednesday

 

[Mr Kobayashi]

On the plus side for me is my ISA might be up to 3.5 to 4 next year. No more 0.4 shit.

And all your gains are wiped out by inflation that is double that.

 

[denislawsbackheel]

On the plus side for me is my ISA might be up to 3.5 to 4 next year. No more 0.4 shit.

Only trailing CPI by 6% then…

 

[Protein Junkie]

Hiking the interest rates up is not having the slightest impact on inflation all its doing is taking hard earned money from all of us. The prices won’t come down because it’s all to do with the war in the Ukraine which we have no control over. You would have thought the Government and its advisers who we trust to do their jobs would have foreseen what the outcome of this war would have on the World.Millions of families life’s ruined forever because and now we are seeing the effect. The BOE are an absolute disgrace and heads need to roll and now it’s us who are paying the price for inflation when it could have been avoided, and now it’s going to last until Putin is dealt with.

Great post this.
Prices do not seem to be going up because of demand but lack of supply.
The more availability the cheaper the cost.
Everything is going up because of shipping costs.
There is where I don’t get it. People are less likely to have disposable income now so the fix is to raise interest rates !

 

[Corky]

When the new data comes out on 14/09 there is a chance the CPIH could have fallen.

 

[Kompany Car]

Only trailing CPI by 6% then…

CPI isn’t necessarily the best measure of inflation at a personal level. When I did the personal inflation calc on the BBC website it said mine was about 7.6%. So whilst 4% isn’t going to eradicate the inflation it might not be quite as much as the headline figures suggest.
That said other than the energy companies there are no winners.