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Inflation soars: the cost-of-living crisis

Will Hutton says in The Observer – with increased information, rising energy bills and new taxes to pay for Covid measures. “Now they’re desperate.” Russia is the world’s largest exporter of gas and wheat, and one of the largest exporters of oil and solar oil. Ukraine is the world’s fifth largest wheat exporter and fourth largest maize exporter. Inevitably, the prices of all of these items have “spiraled up”. Oil has doubled for the year to $130 a barrel. Past oil price spikes on this scale “inadvertently caused global recessions”. The cost of living will continue to rise. Inflation is expected to peak at 9% in the fall. “Everything that can spur growth is being squeezed”: consumer spending, government spending, investment. “You have to go back 50 years” to the 1970s to see “every dial on the economy dashboard” flashing red this way.

Rupert Harrison said the impact on household costs would be huge in the coming years London Evening Standard. Two years ago, dual fuel energy bills averaged under £1,000 a year. The cheapest for a year x is currently £4,000 and could easily be over £6,000. “These are staggering numbers,” alongside inflated prices for “transportation, food, and almost anything else you can think of.” Next week, Prime Minister Rishi Sunak will give spring declaration small budget, Robert Peston said in Audience. It is not clear that the Government “has not yet grasped the scale of the economic challenge”. It has so far set aside £9 billion to ease the pain of rising energy prices; represents a subsidy of just £350 per household. The current crisis is completely different from the impact of Covid, because it is only temporary, while “the reconfiguration of the global economy forced by the invasion of Ukraine will be permanent”.

The danger is that Sunak will react to his normal brand of Thatcherism, saying Guardians. What he needs to do is protect the people in his family, especially the poorer ones – with those benefiting more, the minimum wage is raised and income taxes are imposed on companies. oil to finance lower energy bills. The trouble is that increased government spending “is one of the main ways to drive inflation,” Robert Colvile said in Sunday Times. “That’s what happened in the 1970s.” He would do much better to scrap the planned national insurance increase next month, which would cost taxpayers an extra £12 billion. Whatever he does, Sunak faces “a terrible choice between compassion and prudence”. The short-term pain for households is better than “galloping inflation”.

Donuts

Shopping cart: donuts and menswear are sold out

Changes to the shopping cart used by National Statistics Office To measure price is always an interesting trend gauge. This year, donuts, menswear, coals and atlases are out, Lora Jones noted on BBC Business – replaced with sports bras, meatless sausages, antibacterial wipes and pet collars. With inflation at a 30-year high, “the ONS methodology has come under more scrutiny”. As Interactive Investor analyst Myron Jobson points out, “climbing sessions,” another new addition, “are not likely to rank high on the list of spending priorities among those struggling to make ends meet. living”.

Alistair Osborne says in Time. Fashion consulting has long been a “forte” of the ONS. “And again, the winks did not disappoint.” After 75 years, they’ve killed off men’s clothing, according to Kantar – reflecting a decline in sales from five million to two million a year over the past decade, which, according to Kantar, has been accelerated by “work monitor working from home”.

Nils Pratley says in Guardians – it seems that these days we are eating many packs of pastries. “But it’s hard to believe that men’s suits won’t have a fight” once the working-from-home effects fade. Consider its return to the shopping cart as an “unofficial sign of the economy’s recovery to a post-Paleolithic normal.” I give it 18 months.

Wheat production in Ukraine

Food costs are increasing day by day

As the war in Ukraine intensifies, its direct impact becomes more and more apparent, Guardians. One of them is the disruption of wheat supplies: Russia and Ukraine is responsible for about a quarter of the world’s wheat. This could spell disaster for countries in the Middle East and North Africa, where most of the grain comes from “European bread”: For example, Lebanon imports half of its wheat from Ukraine. , and the allocation is currently being given there.

The UK grows 88% of its wheat; but trade disruptions (Ukraine has banned exports of wheat, corn, oats and other foods), which add to energy costs, are having a serious impact on food prices here. Shoppers can expect to pay more for everything from beef (which is fed with imported grain) to canned tomatoes (which will face higher shipping costs). Then there is the high cost of nitrogen fertilizer: not only is it imported a lot from Russia, the price of this fertilizer is also sky-high due to the escalating cost of gas. This could mean lower yields for UK farmers and higher prices for their crops. Food inflation can only get worse.

https://www.theweek.co.uk/news/uk-news/955313/soaring-inflation-cost-of-living-crunch Inflation soars: the cost-of-living crisis

Fry Electronics Team

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