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The rising cost of living


StefanAVFC

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On 08/08/2022 at 21:36, Sid4ever said:

According to significant consumer research, shoppers are more content to pay the same price for less than pay more for the same.  
 

Just keep an eye on your toilet roll 🤔

no sh!t ! 

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  • 2 weeks later...
53 minutes ago, bickster said:

Interesting question posed by the cleverest kid in my year at schoool (and former LIbDem Pensions Minister)

 

My guess would be that as households are expected to go into debt, their lenders the banks are being compensated for their expected losses due to inflation.

Obviously, these higher interest rates won't be passed on to savers.

I think the policy is basically, protect the institutions and shit on the little guy.

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2 minutes ago, Genie said:

The BoE traditionally raise interest rates when there’s widespread increasing of prices, like now.

 

Yes but this isn’t a traditional situation.

The reason for the rate hikes makes no sense in the current circumstances. Household spending will have to be curtailed anyway and raising interest rates may just increase household spending which is the opposite of what it’s trying to do. The rate rises could actually further kill the economy

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1 minute ago, bickster said:

Yes but this isn’t a traditional situation.

The reason for the rate hikes makes no sense in the current circumstances. Household spending will have to be curtailed anyway and raising interest rates may just increase household spending which is the opposite of what it’s trying to do. The rate rises could actually further kill the economy

I’m sorry but I don’t follow. If inflation was being driven by just energy costs then i’d agree that increasing interest rates isn’t the way to go.

However, the price of absolutely everything is going up so increasing interest rates if the usual way to slow it down.

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1 hour ago, bickster said:

Interesting question posed by the cleverest kid in my year at schoool (and former LIbDem Pensions Minister)

 

This is exactly what I've been trying to bend my mind around for weeks. 

They're applying a traditional solution to inflation which is not being caused by traditional inflation drivers. 

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Just now, Genie said:

I’m sorry but I don’t follow. If inflation was being driven by just energy costs then i’d agree that increasing interest rates isn’t the way to go.

However, the price of absolutely everything is going up so increasing interest rates if the usual way to slow it down.

Inflation is being driven by energy costs, what else do think is driving it?

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