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Over the past week, Labour have been pumping out inflation-themed attack ads across social media, claiming the Tories are responsible for soaring inflation – “higher than any other G7 country”. A carefully selected comparison.
There’s also plenty of spinning about how Brexit is somehow to blame for inflation, particularly on rising food prices, yet the latest data from Eurostat and the Office for National Statistics shows that inflation rates are actually lower in the UK than in both the Euro area and the EU, with prices rising in the UK by 6.7% in April compared to 8.7% and 8.9% for the Euro area and the EU respectively:
Labour is also conveniently ignoring the inflation data from nearly a dozen other European countries, including the Netherlands, Spain, and Belgium, all of which are already seeing inflation reach around 10%. The only country with low inflation in Europe is Switzerland*. Which isn’t in the EU either…
https://order-order.com/2022/05/23/labours-inflation-attack-ads-fact-checked/
No good comparing as if it is an exact comparison.
The basket of constituents and the weighting placed on those constituents can vary from country to country when calculating CPI.
The gall of people to talk about Labour "spinning facts" (debatable) when we have a PM that has been well documented lying to pretty much anything and everything his entire life. Anyway...
We can all argue and play the blame game for the causes for inflation, but the reality is it is here, so what are we going to do about it? The Tories have so far offered zero policies to deal with it while every other major economy in Europe has already introduced a raft of policies aimed at easing the burden on the working class. The Tories only solution it seems is "get back to work"
It beggars belief that on one hand the Tories take credit for historically low unemployment, while also arguing that employment will provide relief to the current financial burdens affecting millions. Those two statements don't really mesh and the reason they don't mesh is that wages have not kept up with inflation, as they haven't for decades, long before this current crisis. If we have historically low unemployment and a cost of living crisis, then clearly "getting back to work" isn't a solution.
I'd love to hear from the Tories on this board what the conservative government is actually doing to ease this crisis for the millions of poor in this country. Because as far as I can tell, their sole priority is making sure they make themselves and their mates rich, while clinging onto power through never-endind scandals. I've yet to see a single piece of legislation that will improve the lives of anyone.
I prefer tory crumpet over Labour, yep
Mac
''The Tories have so far offered zero policies to deal with it ''
The main tool is monetary policy is set by the MPC of the Bank of England.
On the fiscal side government can cut spending and increase taxes.
The worst of UK and US core inflation looks like it has already peaked.
LNG gas, for example, has plunged -80% in weeks.
Unemployment is near its lowest ever in recorded history, wages have soared for entry-level workers in recent years, and house prices are ticking up nicely.
Mac
''that wages have not kept up with inflation, as they haven't for decades''
What ball ox - real wages are a lot higher than in 1980.
There has been a small fall since the GFT
GFC
The cost of gas right now is completely meaningless as we have no way to store it for winter months. Centrica was responsible for 70% of our gas storage and closed that aspect of its business down due to Tory policies in 2017.
"wages have soared for entry-level workers in recent years" Wages have increased marginally, but still below inflation in real-terms, which is all that matters. And they have not kept up with inflation at all over the last decade. Wages have steadily decreased since at least 2008 (I haven't had the time to check further back) and any marginal uptick does not negate that reality.
I also wonder how you square house prices rising every month with the belief you have that there is no housing crisis? I don't understand how you can believe both things to be true. How can you explain prices going up if there is no demand?!
Reality, facts and logic...the arch nemesis of the Tory voter.
Mac
''due to Tory policies in 2017''
You mean the government did not want tax payers to continue subsidising the high costs of maintenance and upgrades of storage.
No storage would mitigate any vast increase in Global prices .
https://www.gov.uk/government/news/rough-gas-storage-facility-undertakings-to-be-removed
"claiming the Tories are responsible for soaring inflation"...
It sometimes feels that way to erode the debt,but in the short term until these prices fall out we end up paying more for the index linked gilts.
My hunch is they will go for windfall tax to reduce the energy cap in September thus lowering the inflation rate for this critical month and rip off pensioners again.
T
''M1 money supply...... As is every other Govt complicit in the QE scam''
Not a 'scam', it is what has been required following the GFC.
We have recently had supply side issues coming out of pandemic along with high energy costs, exacerbated by the war started by Russia which may also impact the ability of Ukraine to export it's harvest.
Huge UK LNG gas exports to mainland Europe are refilling European wholesale storage sites in H1, and the regional glut will bring down UK retail gas prices in H2. Centrica's efficient just-in-time UK storage policy is driving up UK exports and bringing down prices for consumers in the UK and also for our friends in the EU.
UK minimum wage for entry-level workers has soared +55% since 2010. UK inflation has gone up +30% since 2010. Wages have massively outpaced inflation for those who it helps the most.
Everyone has a roof over their head in the UK, housing costs by wage % are the same as last century, while the tick-up in house prices gives the UK economy a feelgood boost.
If Boris can start to bring down taxes just before the 2024 election, gently rightsize the bloated public sector, and tame inflation, the UK is set for a post-Brexit Goldilocks economy.
snige
''It sometimes feels that way to erode the debt,''
the sort of statement that may come from the same people who said that the government control the BOE and will not let them raise rates due to higher interest on government debt.
People cannot have it both ways
Hello LTI,
We created the sanctions not Russia.
The price of energy has risen because we don't want to buy it from Russia or pay for it in their currency anything else is a lie.
snige
''The price of energy has risen because we don't want to buy it from Russia or pay for it in their currency anything else is a lie.''
The UK is not reliant on Russia
T
The current situation of supply caused by pandemic/war has nothing to do with the printing of money when it was a necessity in recovery from the GFT.
The current Inflationary pressures will have to be controlled with monetary and fiscal measures.
Next MPC meeting not too far away
GFC
T
''I hope you've stocked up on your supply ''
I am not selfish - no stocking up at all - I buy food on a weekly basis with whatever is available.
Skier1
Minimum wage workers are not all workers. What is the increase for everyone else.
Skier show me please where the minimum wage has increased by 55% since 2010?
mac
Oct 2010 £5.93
April 2022 £9.50
Interesting Biden considering easing tariffs on china that would cheer the markets i think
Blimey theosus I've read a few of your posts lately ..they range from full global financial meltdown ,famine to a smallpox attack by Russia in what you describe as dark times ahead...I presume you've sold all stocks built a bunker bought 100k tins of corned beef and a chemical attack suit.....gl though...might not be as bad as you think..but things will ve challenging over the next year gl.