Anyone feeling the inflation?

Pawnless Endgame said:
What I don't get is why are we, as consumers, being penalised with these price increases? I'm talking about us as normal consumers as opposed to those who spend outside of their means and stick everything on credit / credit cards.

Food's gone up, Virgin Media goes up 10-15% year-on-year, rail fares up 3%+ every year, VAT at 20%, higher taxes on house insurance, flagship handsets are now £70/month instead of £35/month.

Through no fault of our own.

I guess the one good thing we have going though is personal allowance before 20% tax is now at £11,000. It doesn't offset the above though.
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Prices go up, wages stay the same. They blame "costs", yet these companies make more and more ridiculous amounts of profit every year :/

It's all greed.

Virgin media try a price hike every year, but I threaten to leave and suddenly they offer it way cheaper. So why didn't they just offer that price to begin with? Bunch of chancers tbh, same with insurance companies.
 
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The money supply is always increasing because banks create it out of thin air. Money used to be backed by gold, but it hadn't been for ages.
Banks lend money they don't have yet to you (the money you will give them in the future is on their balance sheet, giving the illusion that they already have it).
Yes that's right, they lend you YOUR OWN MONEY.
 
purplesky said:
This is what happens after years of EMERGENCY interest rates and lots of Quantitative Easing. It'll get a lot lot worse as well over the coming 2 - 3 years unless interest rates are forced up. Thankfully, it looks like that day will be arriving in the not too distant future.
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If interest rates do rise, and rise significantly, there will be a lot of people worse off still. As borrower's fixed and tracker mortgage deals end they'l have less money to spend or save. Be careful what you wish for.
 
Mysterae_ said:
If interest rates do rise, and rise significantly, there will be a lot of people worse off still. As borrower's fixed and tracker mortgage deals end they'l have less money to spend or save. Be careful what you wish for.
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Well those who had saved for so long were punished and now want to see their savings worth.
 
HungryHippos said:
Nope not really, just buy less crap or shop for better deals.
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Absolutely. Got some stuff from Poundland today, then had to pop to Tesco's for some other stuff, and the exact same items were 20-30% more. Shop around, save monies.
TBH if it makes some people reevaluate their lives, and buy less crap then that's a good thing imo.
 
Seen a lot of that at Tesco where they would sell a 3rd party product for say £1 and then sell there own version for £1.50 and withdraw the cheaper identical version to remove choice. I think Tesco are increasingly just rip off merchants.
 
Been quite lucky and has been quote the opposite for us. Gas and electric has been reduced £30 per month, on top of this we have managed to reduce our monthly bills by around £400 per month. Mix of remortgage, reduction in some utilities and cancelling a few subscriptions we were paying for but not really using... Gym, contact lenses etc.
 
So bar the gas and electric. You actually stopped purchasing expensive things.
Which no doubt will in the background be going up in price.

I still find it hard to quantify how they arrive at the inflation figure. Given trashing of pound and brexit, and the rises associated with it, I do not know how they can weight things to be so low.
Do they apply currency adaptions?

Ahh the just make it up...
The one CPI uses takes into account that when prices rise, some people will switch to products that have gone up by less.
And certain things are more heavily weighted.
So if custard cremes go up too much, they just use the price for the tesco own brand instead.
Thus why we have seen such rises in the shops, with made up inflation figures, as they have used substitutes instead.

Nice work on the figure ONS guys :)
 
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We are literally in the mix of spending £575k on a house which is manageable in today's money however I have done some sums today about interest rates pre 2007.. if they returned the mortgage would jump over 1k a month.. 7.5% btw..

Not really hit by inflation although i am sure its costing us, more the worry of how high interest will go in the next 10 years and as such we are worried about inflation
 
It will get a lot worse when interest rates go up.
People have been indulging on cheap credit like a crack whore. People have bought big houses on the back of cheap mortgage rates and cheap loans and soon that will come to an end and then people will really feel the punch.

I earn £60k+ a year, with £60k+ in the bank...... I still opted for a 3 bedroom house under £200k despite banks and mortgage companies throwing money at me to buy a 4 bedroom+ house for £300k to live the good life. I drive a 1.6Tdi Bluemotion Golf yet I can afford a new 5 series because I dont feel the need to keep up with society.
The problem today is that people think they are entitled to the "nicer things" when ordinary things will suffice. But ya know....the cool kidz got to have the latest iPhone!
 
Pawnless Endgame said:
What I don't get is why are we, as consumers, being penalised with these price increases? I'm talking about us as normal consumers as opposed to those who spend outside of their means and stick everything on credit / credit cards.

Food's gone up, Virgin Media goes up 10-15% year-on-year, rail fares up 3%+ every year, VAT at 20%, higher taxes on house insurance, flagship handsets are now £70/month instead of £35/month.

Through no fault of our own.

I guess the one good thing we have going though is personal allowance before 20% tax is now at £11,000. It doesn't offset the above though.
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If you don't understand why prices are rising (or, as you put it, being penalised) then you need to educate yourself a little more. Prices are rising irrespective of whether you're a 'normal consumer' or people who spend on credit.
 
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