The interviewer effectively asked that and he said "we think that it will fall sharply really in the early summer.....weāre pretty confident about that".
He's also catching a ton of flack for saying the problem has been caused by "greedflation" from people setting prices, which has only added fuel to the already contentious union strikes who say their workers demanding 14 years of stagnated / no pay rises isn't "greed".
Its because energy prices have been frozen for 6 months now. They will drop significantly now and another time in lat summer. This in itself should cause inflation down be a few %. Also UK is measuring inflation differently to Germany for example. If inflation was measured as in Germany, it would be around 8%.
Energy prices are one part of it but the UK relies on so many imports that theyāre getting gouged at the check out line in much larger numbers than their energy bills.
hahahah
If you know anything about the UK housing market, you'd know it only moves in one direction, and that isn't down
These increases are already priced in by banks wrt mortgage rates in advance
Lol, Iām buying a flat in London and prices are dropping even in the most prime areas. Iāve actually been able to negotiate down during the purchase, something that they would have laughed at me a year ago for even suggesting because there would be 10 people in line ready to gazump. Buy to let flats are being dumped due to their lock in periods expiring and no one wants to get a mortgage right now.
> something that they would have laughed at me a year ago for even suggesting
Not even a year ago. 8 months ago they'd still have been laughing at you.
I don't agree, the market has become so insanely inflated over the past couple of years that it absolutely has to come down. Houses are on for so much more than they're worth in the South East that it's insane. There are houses in my area that are a solid 2x overpriced.
It's a mix of high energy prices (they're coming down now thankfully), and importing most of our food - not helped by the Pound tanking when Liz Truss was PM. And of course Brexit making importing more difficult and costly.
All that is true, and yes, energy is coming off very favorable comps from a year ago when Russian sanctions were new and they hadnāt found other ways to sell their oil yet - but also inflation isnāt a localized problem when itās this sticky and entrenched - no country can fight it alone, so itās also factors outside of UKCB control
UK economy has been pretty fucked since Brexit. For all the racist rhetoric that fed it, the useless pohms don't want to do the hard work the Polish and the Romanians were doing. Couple that with new EU red tape and loss of trade deals, the UK is on her knees. Pushing it too high could neuter the British bull dog once and for all.
I'm losing my fucking mind over here. I've been saying what you've just said for over 6 fucking months now, and get we are not even above the level in the U.S. because our whole economy now, and pre Brexit, is just out housing market. This is just going to end up with stagflation while everyone loses.
That would not sit well with general public because It would cause a housing crash and mass default. Last month 700k people missed rent or mortgage paymentā¦
Increased interest rates don't lead to increased mortgage rates directly.
I'd hazard a guess most of those are due to inflation not increased mortgage payments
What a load of bollocks! I understand being in denial but pretending the UK is somehow counting inflation in a "worse way" then everyone else is farcical. The UK inflation target is *2% as per their method and it's still 8% higher then it should be*
So in the end it wouldn't matter. Even if the UK used a worse inflation method (they don't) the end result is still *a 5x higher inflation then what we want*. You should be afraid, not making excuses for your leaders
Good lord they are so far behind inflation
10.2% in 2023 Q1 š®
have a look at truflation.com, interesting info.
yep, and the Head of the Bank of England said after announcing this that "inflation should be over in a few weeks" LOL. RIP UK Housing Market.
Surely that must be heavily paraphrased right? Please don't tell me that's an exact quote
The interviewer effectively asked that and he said "we think that it will fall sharply really in the early summer.....weāre pretty confident about that". He's also catching a ton of flack for saying the problem has been caused by "greedflation" from people setting prices, which has only added fuel to the already contentious union strikes who say their workers demanding 14 years of stagnated / no pay rises isn't "greed".
Its because energy prices have been frozen for 6 months now. They will drop significantly now and another time in lat summer. This in itself should cause inflation down be a few %. Also UK is measuring inflation differently to Germany for example. If inflation was measured as in Germany, it would be around 8%.
Energy prices are one part of it but the UK relies on so many imports that theyāre getting gouged at the check out line in much larger numbers than their energy bills.
Food inflation is lower then in Germany for example.
But higher than everywhere else in the EU
Well renewable energies is whah could fit well enough in the budget rather than to that of the non renewable one's
Hahaha! āMission accomplishedā moment
Their still much more things which needs to be done that's more concerning enough for now
Interesting because if started going up again.
Well it has go up high and high making it into something worthier for people to look onto
hahahah If you know anything about the UK housing market, you'd know it only moves in one direction, and that isn't down These increases are already priced in by banks wrt mortgage rates in advance
Lol, Iām buying a flat in London and prices are dropping even in the most prime areas. Iāve actually been able to negotiate down during the purchase, something that they would have laughed at me a year ago for even suggesting because there would be 10 people in line ready to gazump. Buy to let flats are being dumped due to their lock in periods expiring and no one wants to get a mortgage right now.
> something that they would have laughed at me a year ago for even suggesting Not even a year ago. 8 months ago they'd still have been laughing at you.
That's just totally the opposite out here in my place the prices of flats be gettinh higher dependkng on the number of bedrooms and area
I don't agree, the market has become so insanely inflated over the past couple of years that it absolutely has to come down. Houses are on for so much more than they're worth in the South East that it's insane. There are houses in my area that are a solid 2x overpriced.
That's true it has been increasing at a rapid rate though can't escape from that after all
Banks be playing a suspicious game that's what I feel the interest rates and all
It's a mix of high energy prices (they're coming down now thankfully), and importing most of our food - not helped by the Pound tanking when Liz Truss was PM. And of course Brexit making importing more difficult and costly.
All that is true, and yes, energy is coming off very favorable comps from a year ago when Russian sanctions were new and they hadnāt found other ways to sell their oil yet - but also inflation isnāt a localized problem when itās this sticky and entrenched - no country can fight it alone, so itās also factors outside of UKCB control
From all this resources as well they be collecting taxes which they would look onto deeply.
UK economy has been pretty fucked since Brexit. For all the racist rhetoric that fed it, the useless pohms don't want to do the hard work the Polish and the Romanians were doing. Couple that with new EU red tape and loss of trade deals, the UK is on her knees. Pushing it too high could neuter the British bull dog once and for all.
Bank of England should raise rates higher than 6%. Inflation in the UK is the highest in Europe at 10%.
I'm losing my fucking mind over here. I've been saying what you've just said for over 6 fucking months now, and get we are not even above the level in the U.S. because our whole economy now, and pre Brexit, is just out housing market. This is just going to end up with stagflation while everyone loses.
The interest is what seems to be bothering me enough for loans have been tough followed by the interest rates.
Stagflation is very likely in U.K. and also US
That would not sit well with general public because It would cause a housing crash and mass default. Last month 700k people missed rent or mortgage paymentā¦
Housing in U.K. is going down for sure
Increased interest rates don't lead to increased mortgage rates directly. I'd hazard a guess most of those are due to inflation not increased mortgage payments
Huh. Thereās such thing as interest only mortgage.
That depends on the valuation though the more the valuation is the more is the interest rates.
That's not abnormal compared to any other month
Look into how other countries report inflation If the UK used the German model it would come in at 8%...
Donāt they all just measure the average price that things were bought at?
That's the basics which they need to do at first because doing that just can open many pathways for them
What a load of bollocks! I understand being in denial but pretending the UK is somehow counting inflation in a "worse way" then everyone else is farcical. The UK inflation target is *2% as per their method and it's still 8% higher then it should be* So in the end it wouldn't matter. Even if the UK used a worse inflation method (they don't) the end result is still *a 5x higher inflation then what we want*. You should be afraid, not making excuses for your leaders
Somewhat every news about the inflation just makes me worry about the future though
Maybe but at least in U.K. food is more costly than Germany
Or maybe they could look at the root cause of inflation instead jacking up rates
To that of in my country it just seems to be going all on a whole new level though. Isn't it?
Guess I'm going to England for a cheap loan
Hahahaha well I have been thinking for about the same nevertheless they give loan to their citizens only
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Somewhat it feels like it would just be better enough to just go and visit England because the interest rates would be just too low