Inflation Increases By 35% - Minister Says It's Good News - Right Oh!

[ToraToraTora]

https://news.sky.com/story/politics-latest-rayner-to-stand-in-for-starmer-at-pmqs-as-minister-insists-inflation-rise-is-good-news-12593360

Astonishingly the chief secretary to the treasury says it's good news. What planet are these people on?

[Old_Geezer]

That's a big increase !

[ToraToraTora]

Yes OG 0.6 point rise to 2.3 from 1.7 = 35.2%

[teacher1]

Gulliver will be happy ...... he always says that that Labour are on the up !

[CrapatCryptics2]

It probably is good news for a CSTTT who knows his investment portfolio will flourish

[youngmafbog]

The result of left wing 6th form economics.  Thisis just the start, the money men are not happy. Rachael of the complaints department wont be happy.

 

//It probably is good news for a CSTTT who knows his investment portfolio will flourish//

Perhaps you could explanin to me out inflation makes an investment portfolio (That most would have invested around the World anyway) would flourish?

[douglas9401]

A headline worthy of GB News. 🤣

[douglas9401]

A headline worthy of GB News. 🤣

[ToraToraTora]

you can say that again!

[Hymie]

This Labour government has a lot catching up to do on inflation, to match the performance of the last Tory government.

 

In October 2020 annual inflation stood at 0.9%, two years later in October 2022 it stood at 9.6% - more than a 960% rise in 2 years.

[New Judge]

"This Labour government has a lot catching up to do on inflation, to match the performance of the last Tory government."

Indeed. Hopefully the new Labour government will not have the tiresome inconvenience of a global pandemic and the outbreak of a major war in an area which is a source of a considerable proportion of Europe's fossil fuels to interrupt their plans. As I recall, those problems seemed to influence most major economies.

That will just leave them the problem of excessive government borrowing to worry about when it comes to tackling inflation:

https://www.bbc.co.uk/news/articles/c4gx70djyg7o

Some of this was due to the above inflation unconditional pay rises given to many public sector workers.

Still, their tax rises will deal with that. But I forgot (and so did they, it seems) that increased taxes sometimes have an effect on inflation as well.

Never mind. There's always a reduction in spending to consider. 

Chief Secretary to the Treasury Darren Jones said again that the Labour government "...will never play fast and loose with the public finances. Our new robust fiscal rules will deliver stability by getting debt down while prioritising investment to deliver growth."

I wait with bated breath.

[ToraToraTora]

hymie: "n October 2020 annual inflation stood at 0.9%, two years later in October 2022 it stood at 9.6% - more than a 960% rise in 2 years." - it's almost as if some sort of world wide crises occurred. What's the crisis now? I know, Labour are the crisis, they inherited the fastest growing strongest economy in the G7 and are now trashing it.

[youngmafbog]

//This Labour government has a lot catching up to do on inflation, to match the performance of the last Tory government.//

Christ on a bike.  Do people think before posting or is ideaology that powerful that little facts like Covid & Ukraine (the bread basket if the World plus sanctions on Russia) can be ignored?

[Hymie]

Why does the Ukraine/Russia conflict only affect inflation under a Tory Government?

[ToraToraTora]

^^^^ I've heard it all now!

[Hymie]

Ah, so now the UK inflation is not the fault of the current Labour government, but due to external forces such as the Ukraine/Russia conflict.

[New Judge]

"Why does the Ukraine/Russia conflict only affect inflation under a Tory Government?"

Who said it did?

It was you who made the comparison with that period and at that time there was a Conservative government in the UK. It would have affected this country similarly whoever was in power.

You suggested that high inflation was a result of a Tory government when in fact it was mainly the result of two major global events that were outside the control of any government and which effected economies worldwide.

I don't think anybody else believes otherwise.

"Ah, so now the UK inflation is not the fault of the current Labour government,..."

The inflation from two or three years ago was caused by global events. There is little dispute about that. No UK government of any persuasion could either have forseen those events or, even if they did, could have done much about them.

Whilst governments cannot greatly influence global events they can, however, develop domestic policies which will have an inflationary effect.

Currently inflation is near enough within acceptable limits. The BoE's target is 2% and it is only marginally over that. However, the new government's budgetary measures will do nothing to curb inflation from rising again.

Principle among those measures are the raising of employers' NI. Contrary to government suggestions (and some on here) that will lead to either increased prices or redundancies/lack of new jobs.

Add to that, excessive government borrowing, which shows no sign of abating, coupled with the announcement in the budget that a further £50bn will be borrowed for "investment" and interest rates can only go one way. And that also will lead to higher inflation.

Finally, paying uncondiional above inflation pay rises  to large numbers of public sector workers is the surest way of all to see a surge in inflation. For lessons in that, simply read about what happened in the UK in the late 1970s. 

So in short, the relatively high inflation from 2020-22 was not the fault of the government and it is ridiculous to compare those figures with now. The lower inflation now is not due to the actions of the current government. Nothing they have done has caused any significant variation in what would otherwise have happened. But if inflation begins to rise in the new financial year and assuming no global events have been identified as the cause, you will need to look back no further than 31st October 2024 for an explanation.

[Hymie]

Youngmafbog posted //Christ on a bike.  Do people think before posting or is ideaology that powerful that little facts like Covid & Ukraine (the bread basket if the World plus sanctions on Russia) can be ignored?//

 

Since UK inflation is only the fault of the current Labour government, the Ukraine/Russia conflict must now be having no effect on UK inflation (or maybe unbeknown to me, Trump has achieved what he said and ended the war in a day).

[New Judge]

"Since UK inflation is only the fault of the current Labour government,..."

Who has suggested that (other than you)?

[Togo]

The war in Ukraine has already started! It cannot now cause inflation! Its effects are ongoing and already factored into the running cost to our economy unless we are spending more than ever on weapons. That is not the case though is it. In fact we are now spending less on out military budget.