UK inflation hits new high of 9.1% as food and energy price surge persists

[theCommittalist]

During the pandemic lockdown period much of the production inside the renewables industry was halted. During it the price of crude oil, used to make gas and petrol, also came crashing down. That was the point the people managing the crisis would have told their loyals to buy the black stuff. Now they're coming out as against nuclear as well as renewables, not because its environmentally unfriendly, but because it threatens the profits of the 'seven sisters' oligopoly and later OPEC nations.

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[D-law]

High inflation has many causes and could be outside the control of the United Kingdom, so blaming the central bank policy will not be useful, but it is responsible for part of it by the delay in raising interest rates. What matters now is that the crisis has occurred and must be managed, so the bank acted within months The next one will clarify whether inflation will be under control or whether the problem will increase.

In general, I have visited and lived for several months in countries with a runaway inflation rate of more than 20%, prices change every few days, so people should get used to these fluctuations in the short term.

What would possibly be the recommendation to fight inflation ?
How can it be tackled, what will you advice .
Food shortage and the increase in transportation fees are currently on a high increase.

[edgycorner]

I'm not sure what all the fuss is about. Inflation is only up 9.1%, and that's just in line with expectations. Sure, housing and household services, primarily electricity, gas, and other fuels are causing the largest upward contributions to the inflation rate, but that's to be expected(thanks to corona and Russia :p).

After all, we need to keep our economy moving, and that costs money. The survey about "four in five people" is a little misleading. It's not like anyone is actually going to go without food or energy. They may have to tighten their belts a bit, but in the end, they'll just have to pay up. This is the price of living in a developed country.

[theCommittalist]

The highs of inflation is hitting everyone very badly. The price of energy and food is at record high. if inflation will persist, it will gravely affect economies, the US federal reserve has increases the interest rates. All these are not good signs.

It is a form of covert colonialism. The way it works is through systematically convincing a population that you represent their best interests & are in legitimate control of their material & educational resources. The internet created a revolution in global democracy between like 1990-2015 & it threatened the established autocracy rule over their covert (& overt) colonies. This is why they have used brain draining FUD like 'Brexit' and 'Covid19' to explain away all sorts of invasive oppressions & man-made crises, have invented these 'woke snowflake' identities to stigmatise & undermine the activated millennials & started to move in on the free spread of information under guises like 'hateful content' & 'threats to the international order' etc..

One must always remember that the people with the most power on earth today, in those meetings in those boardrooms, they cut their teeth & came of age in a world without the internet. And that is the misspent youth they are trying to reclaim.

Inflation is the deliberate weakening of a currency by raising the price of goods & services at a government level. It is just another way to keep the masses dispersed.

[Ultegra134]

I'm not sure what all the fuss is about. Inflation is only up 9.1%, and that's just in line with expectations. Sure, housing and household services, primarily electricity, gas, and other fuels are causing the largest upward contributions to the inflation rate, but that's to be expected(thanks to corona and Russia :p).

After all, we need to keep our economy moving, and that costs money. The survey about "four in five people" is a little misleading. It's not like anyone is actually going to go without food or energy. They may have to tighten their belts a bit, but in the end, they'll just have to pay up. This is the price of living in a developed country.

There's no possible way that such inflation is normal, if you see such increases normal, then you must be pretty well-off to not be bothered by it. A small percentage of inflation (1%-2%) is considered healthy for the economy, the current situation isn't, it's putting a huge burden on households and the economy itself. The higher prices are unlikely to ever return to previous levels, reducing our available income, while our salary has hardly increased since the whole situation started.

How is that considered normal or healthy?

[edgycorner]

I'm not sure what all the fuss is about. Inflation is only up 9.1%, and that's just in line with expectations. Sure, housing and household services, primarily electricity, gas, and other fuels are causing the largest upward contributions to the inflation rate, but that's to be expected(thanks to corona and Russia :p).

After all, we need to keep our economy moving, and that costs money. The survey about "four in five people" is a little misleading. It's not like anyone is actually going to go without food or energy. They may have to tighten their belts a bit, but in the end, they'll just have to pay up. This is the price of living in a developed country.

There's no possible way that such inflation is normal, if you see such increases normal, then you must be pretty well-off to not be bothered by it. A small percentage of inflation (1%-2%) is considered healthy for the economy, the current situation isn't, it's putting a huge burden on households and the economy itself. The higher prices are unlikely to ever return to previous levels, reducing our available income, while our salary has hardly increased since the whole situation started.

How is that considered normal or healthy?

It's normal because it's within the expectations. Don't forget what Corona did to the supply chain, it's more screwed than a 10 pound whore behind MaccyD. Then Russia happened  Goods and serices will be infalted for a while.

Other aspects of UK economy are doing pretty well, the GDP is growing, unemployment is low and the stock market is performing fairly well(check FTSE 100).

[DrBeer]

What happens to the west policy of sanction? Didn't they want to cripple Russia's economy? The time for UK and USA is coming to an end. Their unipolar word system will no longer work and we are going to see some new powerhouse raise. What China is doing is a warning to the west. Now they have the capability to challenge the USA naval fleet near their cost line.

I listened to such slogans throughout the school, when there was still the USSR. They also carried similar nonsense there, such as the United States will soon rot, the USSR will defeat everyone, the dollar is worth nothing, the ruble is very stable, ... Well, in general - the West is collapsing, and guaranteed As a result - the USSR - collapsed, new rulers - kleptomaniac terrorists of Russia keep all their savings in dollars and euros, in American banks

PS Return to objective reality!

[teosanru]

9.1% is huge. Even for a developing economy such sort of inflation is huge while UK is a developed economy. This is clearly indicating how much pressure the economy is currently having after the recent Covid crisis followed by sanctions applied by them on Russia due to Ukraine crisis. 9.1% is even more than the annual increment which many employees get. I think this is a clear indication of a pending correction in the economy which might come in form of a crash.

[yhiaali3]

The increase in the rate of inflation in developed countries such as the United States, Britain, Switzerland and Germany, as well as most European countries, portends an acceleration of the deterioration of the global economy. I do not live in Europe, but I have friends in Europe and Canada as well. I always hear from them about the high prices of materials significantly compared to the past few years. There are many problems in the global economy and the Russian invasion of Ukraine deepened these problems much more. There are many complex reasons that caused this The economic situation is bad, but the most important ones, in my opinion, are the Corona epidemic in addition to the Russian-Ukrainian war, so the world must go to solve these problems, otherwise the situation will get worse.

[NotATether]

More than four in five people in the U.K. are worried about rising living costs and their ability to afford basics necessities like food and energy over the coming months, according to a new survey.

It is what it is, rising prices. But at least the public can handle them for now.

There is no need for them to worry about things like this, because worry will make all kinds of stress-related diseases which will rack up your medical bill, at exactly the wrong time to do so.

So you should not panic if you can afford the price in the present. The future is not in your hands.

[Ultegra134]

I'm not sure what all the fuss is about. Inflation is only up 9.1%, and that's just in line with expectations. Sure, housing and household services, primarily electricity, gas, and other fuels are causing the largest upward contributions to the inflation rate, but that's to be expected(thanks to corona and Russia :p).

After all, we need to keep our economy moving, and that costs money. The survey about "four in five people" is a little misleading. It's not like anyone is actually going to go without food or energy. They may have to tighten their belts a bit, but in the end, they'll just have to pay up. This is the price of living in a developed country.

There's no possible way that such inflation is normal, if you see such increases normal, then you must be pretty well-off to not be bothered by it. A small percentage of inflation (1%-2%) is considered healthy for the economy, the current situation isn't, it's putting a huge burden on households and the economy itself. The higher prices are unlikely to ever return to previous levels, reducing our available income, while our salary has hardly increased since the whole situation started.

How is that considered normal or healthy?

It's normal because it's within the expectations. Don't forget what Corona did to the supply chain, it's more screwed than a 10 pound whore behind MaccyD. Then Russia happened  Goods and serices will be infalted for a while.

Other aspects of UK economy are doing pretty well, the GDP is growing, unemployment is low and the stock market is performing fairly well(check FTSE 100).

How is the average citizen benefit from it, though? While I get your point of view, I'm only seeing an increased living cost for citizens, some of which are not able to afford and adapt to the higher costs. Inflation in Greece is currently at 11.3%, is that also considered within the expectations, when we're forced to pay over 10-15% over what we used to, without having an substantial increase in our salary to back it up?

[FrozenBit]

It is not too surprising that these things have been warned about before, after the fuel price was pushed up. It is also very reasonable for the items to increase accordingly. But looking at some of the inflation problems in some of the top countries, I see a situation where they don't only accept fuel from Russia, but in essence it's also from India and China that they can buy in a more verbose way, and that also contributes to inflation in many economies.

[Fortify]

U.K. inflation hit 9.1% year-on-year in May as soaring food and energy prices continue to deepen the country’s cost-of-living crisis. The 9.1% rise in the consumer price index, released Wednesday, was in line with expectations from economists in a Reuters poll and slightly higher than the 9% increase recorded in April.

Consumer prices rose by 0.7% month-on-month in May, slightly above expectations for a 0.6% rise but well short of the 2.5% monthly increase in April, indicating that inflation is slowing somewhat. The largest upward contributions to the inflation rate came from housing and household services, primarily electricity, gas and other fuels, along with transport (mostly motor fuel and second-hand cars).

The Consumer Prices Index including owner occupiers’ housing costs (CPIH) came in at 7.9% in the 12 months to May, up from 7.8% in April. “Rising prices for food and non-alcoholic beverages, compared with falls a year ago, resulted in the largest upward contribution to the change in both the CPIH and CPI 12-month inflation rates between April and May 2022 (0.17 percentage points for CPIH),” the ONS said in its report.


The Bank of England last week implemented a fifth consecutive hike to interest rates, though stopped short of the aggressive hikes seen in the U.S. and Switzerland, as it looks to tame inflation without compounding the current economic slowdown.
More than four in five people in the U.K. are worried about rising living costs and their ability to afford basics necessities like food and energy over the coming months, according to a new survey.

Something will have to give soon, it's simply unsustainable when it was running steady for around ten years around the 3% mark. Any potential savings that were accumulated during Covid are getting wiped out and wage rises are simply not happening. Even if wages do raise it just causes the inflation rate to go higher. Maybe a recession is both inevitable and necessary to reset to equilibrium as it seems like politicians have no interest in governing certain sectors which are making runaway profits. Sadly it's the average person who will suffer and the super rich carry on regardless.

[so98nn]

I’m wondering why small countries with highly developed economical structure is hitting with the inflation. There might be few meanings to my sentence up here but I’m talking about in the sense of managing the economical circular and stop the inflation from happening. They have better control over financial systems considering digital tracking, every person having their taxes paid off and less population with kingly control, why they have such failure is big complex for me. I can understand this happening for densely populated countries, high illiteracy rate and what not!

[edgycorner]

I'm not sure what all the fuss is about. Inflation is only up 9.1%, and that's just in line with expectations. Sure, housing and household services, primarily electricity, gas, and other fuels are causing the largest upward contributions to the inflation rate, but that's to be expected(thanks to corona and Russia :p).

After all, we need to keep our economy moving, and that costs money. The survey about "four in five people" is a little misleading. It's not like anyone is actually going to go without food or energy. They may have to tighten their belts a bit, but in the end, they'll just have to pay up. This is the price of living in a developed country.

There's no possible way that such inflation is normal, if you see such increases normal, then you must be pretty well-off to not be bothered by it. A small percentage of inflation (1%-2%) is considered healthy for the economy, the current situation isn't, it's putting a huge burden on households and the economy itself. The higher prices are unlikely to ever return to previous levels, reducing our available income, while our salary has hardly increased since the whole situation started.

How is that considered normal or healthy?

It's normal because it's within the expectations. Don't forget what Corona did to the supply chain, it's more screwed than a 10 pound whore behind MaccyD. Then Russia happened   Goods and serices will be infalted for a while.

Other aspects of UK economy are doing pretty well, the GDP is growing, unemployment is low and the stock market is performing fairly well(check FTSE 100).

How is the average citizen benefit from it, though? While I get your point of view, I'm only seeing an increased living cost for citizens, some of which are not able to afford and adapt to the higher costs. Inflation in Greece is currently at 11.3%, is that also considered within the expectations, when we're forced to pay over 10-15% over what we used to, without having an substantial increase in our salary to back it up?

He benefits from a stable economy. Inflation makes people spend more money, which oils the cogs and gears the economy towards a healthy road.

Yes, at the moment wages don't match the prices. But in the future, they will rise too. If we don't increase the price, then its production won't be beneficial. Businesses will shut down, factories will close, jobs will vanish, unemployment will rise and within a few months we might even have mad max scenarion IRL  

[franky1]

I am wondering is it only the effect of higher fuel prices or Brexit is also responsible for this to some extent. Europe really need to gear up itself for tough times ahead.

Brexit is not responsible for this inflation. High energy prices is one of the major reasons behind this. Price of the commodities is heavily dependent on the fuel price. With the ongoing Russia Ukraine war, the fuel is being sold at a premium. OPEC countries are not increasing the supply while their is demand, adding up to the supply stress leading to consumer inflation.

if you look at the price per barrel of oil. the price is no higher then 2008..($120) yet fuel prices at the car petrol station pump is twice as high as 2008
its not the oil price(what car fuel is made from) fault..

there is no lack of supply of car fuel either. unlike a couple years ago. but even then a lack of supply car fuel did not cause petrol prices to go above £1.90/litre in the UK. it was more stable at like £1.30 during the supply shortage


this so called "crisis" is a more planned profiteering event, its the more local refineries that convert that oil into car fuel that are making the HUGE profits. (not higher costs to them.. only higher cost to the end-retail consumer)
this is because governments want to push car fuel prices up, to push people to move to low carbon cars (low engine capacity or electric cars) to speed up the "green agenda"

do not expect the price of car fuel to decline back to 2020 prices. they will remain high. as thats the whole point.
separate issue:
they want fuel/power companies to make huge profits. with a stipulation they can only have the profits tax free, if they invest that huge profit in switching to renewable technology sooner then scheduled.
which helps their big "green agenda" targets yet again

..
secondly.
government took cost people a trillion in QE for covid and the crisis before (2010-2021).. lets call that 1trillion loaf of bread value.(replace bread for any value indicator of living cost you prefer)
if over the next 10 years they can make a loaf of bread(replace bread for any value indicator of living cost) cost 5x more then what it did last year. then when they need to pay back 1.x trillion(fixed rate fixed monetary unit amount.). they only need to pay back 1x0billion loaf of bread value. (replace bread for any value indicator of living cost)
yep. repay 5x less in living cost. because thats how these sorts of loan contracts work in recession..
.. so governments are happy to push things up at the retail price end. because it shrinks the living cost value they need to repay
..

a side note.
the 2008 crash caused many issues in many industries. the ones that survived it done so by raiding the pension pots of their employee's which would have caused an impending next crash a few decades later.
however by causing an artificial and planned recession now, would mean although peoples guaranteed pots of XXX at retirement wont buy them as much bread as they were promised. that would have happened anyway., they can atleast have someone else to blame for it, so they get to hide some of that mis-spending.. and pretend it was not mis-spent, but instead just devalued due to recession

again imagine someones $£100k pension was cut in half due to the 2008 crisis of businesses stealing 50% of pension pots . by having a recession and making everything valued at say 5x less.. that $50k missing(25k loaves of bread) later becomes $50k($5k loaves of bread) so they can easily put in $50k to make it seems like nothing went missing in the future because it only cost them 5k loaves of bread value to refill a hole that was originally 25k loaves of bread value.

with things like the covid QE and now the energy QE they are shifting the blame of this earlier mis-spending away from banks and government..  by blaming events like the energy crises and covid, which they want to blame on slavic/asian  countries like russia and ukraine. and china as an ultimate cause of why peoples future pensions wont give retiree's a lifestyle they were expecting to get.

because to governments, they do not want to be seen that things went bad during conservatives power, and want to be seen that the conservatives were the solution makers(of their own problems they wont admit to)

[stompix]

if you look at the price per barrel of oil. the price is no higher then 2008..($120) yet fuel prices at the car petrol station pump is twice as high as 2008
its not the oil price(what car fuel is made from) fault..

there is no lack of supply of car fuel either. unlike a couple years ago. but even then a lack of supply car fuel did not cause petrol prices to go above £1.90/litre in the UK. it was more stable at like £1.30 during the supply shortage

Isn't it lovely how you compare two prices one in dollars and one in pounds and you draw conclusions?

Let's do it properly:
Barrel of oil in 2008 120$, 1 GBP=2 USD , meaning one barrel of oil was 60 £
A barrel of oil is now 110$, 1 GBP= 1.2242 $, making one barrel of oil worth 90£

That makes an increase in £ for the barrel of oil 50%.

You yourself have said that the price was stable at £1.30, let's put 50%, you get £1.95, which is the current price...

You see, no conspiracy, simple math and logic, available in every elementary school from an early age!

[franky1]

if you look at the price per barrel of oil. the price is no higher then 2008..($120) yet fuel prices at the car petrol station pump is twice as high as 2008
its not the oil price(what car fuel is made from) fault..

there is no lack of supply of car fuel either. unlike a couple years ago. but even then a lack of supply car fuel did not cause petrol prices to go above £1.90/litre in the UK. it was more stable at like £1.30 during the supply shortage

Isn't it lovely how you compare two prices one in dollars and one in pounds and you draw conclusions?

Let's do it properly:
Barrel of oil in 2008 120$, 1 GBP=2 USD , meaning one barrel of oil was 60 £
A barrel of oil is now 110$, 1 GBP= 1.2242 $, making one barrel of oil worth 90£

That makes an increase in £ for the barrel of oil 50%.

You yourself have said that the price was stable at £1.30, let's put 50%, you get £1.95, which is the current price...

You see, no conspiracy, simple math and logic, available in every elementary school from an early age!

isnt it funny how you accept that the dollar barrel is not the problem (yet america is having price problems where there is no conversion).. yet you ignore that fact..

and yet in britain you are stlil agreeing with me that the price per barrel is not the problem. but its instead the forex rate.. that has changed hmm.. i wonder if you ever consider that the forex rate has been adjusted due to the after effects.. not the cause.
many refineries dont actually hand pounds to american/saudi oil barons. nor do they have only pounds but convert to dollar on the day of purchase...
UK actually have dollar reserves from decades ago. (its like buying the dip. hoarding.. you know. investing for future hedges against inflation... i do so hope you atleast understand this concept.. it might aid you in bitcoin investment )

meaning whether its 2008 or 2020 they handed over the same amount of reserves.
the forex after purchase then changes to then reflect the market rate.

you know because maybe.. refineries are just smarter with money than a toddler you think they are
..
do you realise that they are making huge profits from this inconsistency of barrel price vs local retail price.
or do you actually think refineries are making a loss and forced to push prices up..

.. ill let you figure out that chicken and egg problem..
but here is a hint. forex market doesnt play to whims of reserve swaps. it actually bases the value of such reserve swaps against indicators of value like local retail common goods basket prices to set the value for the swaps.

meaning when petrol prices and food go up the forex then reflects that as a after effect.
where by the refineries have already got the oil and the forex markets are the reacting to the retail markets.

its how companies can make profits playing the markets even when the source goods are the same. by raising the retail prices to get profit. but then affect the market to make it look like they are making a loss/breaking even

the secret is is seeing if they are making profit .. then you know that they have played you too.

the funnier thing is that you honestly think that refinaries pay the oil price of june using the forex rate of the june retail indictors.. not even realising that they bought that oil tankers contents of oil many many months ago and refined it and distributed it, before june. but then sell it at a june price. which forex then reacts to

[tbterryboy]

I’m wondering why small countries with highly developed economical structure is hitting with the inflation. There might be few meanings to my sentence up here but I’m talking about in the sense of managing the economical circular and stop the inflation from happening. They have better control over financial systems considering digital tracking, every person having their taxes paid off and less population with kingly control, why they have such failure is big complex for me. I can understand this happening for densely populated countries, high illiteracy rate and what not!

The reason, well at least the main reason would be the fact that in the smaller nations it is easier for politicians to be corrupt. I know that makes sense to people who lived in a small nation, and maybe people who live in 100+ million population type of places may not understand this.

But, when you live in a nation with a small population, a small economy, and of course a small number of voters total, that means that you could be corrupt and you can get away with it, because you are reaching out to a lot of people with your corruption and getting their vote as well. You could literally have a few industry giants in your pocket, keep being a president thanks to that, and control the whole media since it is only a few channels.

[savetheFORUM]

How is the average citizen benefit from it, though? While I get your point of view, I'm only seeing an increased living cost for citizens, some of which are not able to afford and adapt to the higher costs. Inflation in Greece is currently at 11.3%, is that also considered within the expectations, when we're forced to pay over 10-15% over what we used to, without having an substantial increase in our salary to back it up?

The consumer doesn't get any benefits from this but the only one that can is the producer, companies, sellers and business minded people because they can think of ways on how to use the situation as their advantage. Those can't afford are now in danger but they need to find ways, if ever there's still any? Only to keep up and continue living on this new standard. Inflation or an increase of it is expected already as this wasn't the first time that happened to us.

The only sad thing is that our salary is still the same. This seems not right but the government or the companies/employers must do something to help combat the issue.