Anyone feeling the inflation?

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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Ask the Japanese how well raising interest rates goes! Chances are as soon as they stick it up half a percent the mortgage companies will instantly pass it on (unlike the last few reductions for most) people will panic and stop spending which will kill growth in the economy so rates will fall again. Rinse andcrepeat for a few decades!

Inflation and the low exchange rate is hitting everyone hard except the really well off great choice on brexit folks!
 
cainer said:
he did...
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Took me too long to get this. Time for another coffee. :)

Back on topic. Can't say we feel it as such but it is starting to be noticeable on some items. Though worried a little bit about the future cos once we have kids and only one income for a while it might get a bit tight.
 
Interest rate rises will destroy thousands of families this time round, most people don't really know what high interest rates are and yet they were 15% only 25 years ago in the early 90's. I know several couples that will be in dire financial problems with even a small increase.
 
LOAM said:
Interest rate rises will destroy thousands of families this time round, most people don't really know what high interest rates are and yet they were 15% only 25 years ago in the early 90's. I know several couples that will be in dire financial problems with even a small increase.
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If people are living their lives and struggling down to the last penny with the base rate at 0.25% then they are very stupid. Cheap credit is not a reason to out and get more of it :p.
 
You can't even afford to drink your problems away in a social setting because it's so heavily taxed these days. :p

I go to the pub a few times a month maximum now when it used be a few times a week. I resent paying so much out of principle rather than it being unaffordable, though.

I hate drinking indoors so at least I'm a bit healthier from it.
 
OpenToSuggestions said:
If people are living their lives and struggling down to the last penny with the base rate at 0.25% then they are very stupid. Cheap credit is not a reason to out and get more of it :p.
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You may find there are business who have preexisting loans that have been stretched to maintain the business, and if rates rise too fast too sharply, then they will go under.
There are very few people with borrowings that were made easily at 0.25%, even the best of loans at the moment are 3%.
Credit cards is where lots of debts are dumped, and if not on interest free periods, then they'll be getting hit at around 20% anyway.

Its the homeowners who are just about making do, or switched to interest only that might be caught badly by rates rises.
 
OpenToSuggestions said:
If people are living their lives and struggling down to the last penny with the base rate at 0.25% then they are very stupid. Cheap credit is not a reason to out and get more of it :p.
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Whilst I sort of agree you need to look at the bigger scenario. Since many of these people took out mortgages, cost of living has risen sharply. I know several that are on reduced hours due to shrinking businesses etc.

You are right though that many people have been foolish and borrowed more than they can realistically afford. I'm just relieved than or mortgage is now only around 1x our combined salary.
 
photoshop said:
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!
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Sensible thinking but your money in the bank is loosing value in real terms. With property prices increasing at the rate they have over the last 4(ish) years it would have been a wiser choice buying that 4 bed.
 
Narj said:
You can't even afford to drink your problems away in a social setting because it's so heavily taxed these days. :p

I go to the pub a few times a month maximum now when it used be a few times a week. I resent paying so much out of principle rather than it being unaffordable, though.

I hate drinking indoors so at least I'm a bit healthier from it.
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Sounds like the tax is working exceedingly well.
 
D.P. said:
Sounds like the tax is working exceedingly well.
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Not really, all the hardcore boozers are still out all the time. I think they must be spending less on food! Perhaps in the case of builders putting less work through the books! ;)

Booze is still very cheap if you want to get it from a supermarket and get bladdered at home. I just personally don't like drinking indoors. All the current regime is doing is closing down pubs. Sad considering that outside of the cities they are social hubs and can be a positive part of the local community.

I thought a while back they wanted to crack down on the middle-aged home drinkers as they were supposedly most likely to burden the NHS.
 
If I had or wanted kids I'd be pretty worried right nowadays. Things have been getting more expensive no doubt. And it's pretty much everything from food to utilities.

But it's it like it's unexpected. Add in exit from eu to make it worse.
Must be hard for families earning modest incomes with kids.
 
SDK^ said:
Sensible thinking but your money in the bank is loosing value in real terms. With property prices increasing at the rate they have over the last 4(ish) years it would have been a wiser choice buying that 4 bed.
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But I dont need a 4 bed. Why increase my monthly outgoings for no reason..?
House prices cannot keep rising and at some point a correction is going to come. The current format is not sustainable.
 
In spite of low reported inflation, food in tesco and other places has increased in price by about 100%. Its interesting to notice than when you see an item on sale it is never below the full price of about 5 years ago. When shopping I watch the price of food and never buy at the inflated price if I can, but its becoming more difficult, people may say inflation is changing to 3% from 1.5% but in truth food prices have increase by about 20% year on year for about that last 5 years.
 
photoshop said:
But I dont need a 4 bed. Why increase my monthly outgoings for no reason..?
House prices cannot keep rising and at some point a correction is going to come. The current format is not sustainable.
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Said everyone for the last 30 years! You could have invested your savings in a London flat sold it and been significantly better off that keeping it in the bank!
 
I bought a mars milk today, pretty sure it used to be a 500ml bottle but it was now only 400ml :/

I'd rather pay more for the same, than pay the same for less.
 
Well the handset thing is just new flagship price points, nothing to do with inflation. They make more money by increasing the flagship price-point and releasing a phone at last years bracket. Eventually people reach their limits and buy the most expensive phone they are willing to pay for, where as the people still buying the flagship have been eased up over a few years and habitually want the newest flashiest model.

The company i work for has felt the sting from our suppliers, especially because we buy from China a lot. If we raise prices, customers kick off but if we keep the same ones, then margins disappear.

Supermarket packet sizes are not to do with suppliers trying to con you. It is because we have had such a 'buy more for less', price matching culture for the last few decades that it is just something retailers have to do to look competitive. It is more important to seem competitive because people always believe that if they can get it elsewhere for more, than it is because the other place is a rip off rather than anything else. It is also the reason we have a drop in quality of some products and why some industries are really squeezed by supermarket giants.
 
Doing a shop yesterday, it was interesting to see some branded prices up by 50% or so. I just buy the cheaper alternatives where it's likely to be of equal quality or thereabouts. Brands are a massive rip-off for many products, especially pharmaceuticals.
 
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