What A Plonker

[nicebloke1]

Inflation has just gone back up, but Jeremy Hunt says his plan to get it down is working. Thats a bit confusing. :0)

[Old_Geezer]

Presumably he's implying longer term.

[nicebloke1]

Another 13 years do you think OG?

[drmorgans]

 

What puzzles me is that they're taking demand-side actions (interest rates) to try and affect something that's caused by supply-side issues (war in the Middle East).

 

[nicebloke1]

The cons appear to be blaming booze and tobacco. It must be these pint bottles of champagne the cons have been celebrating with on their windfalls.

[gulliver1]

09.52  Anyone and everyone elses  fault,  but   nothing to do with most corrupt Tory UK Gov....ever...... not their fault of course.

[drmorgans]

 

Corrupt? Riven by division, sucking up to their (hidden ) paymasters and unable to handle the complex world we're living in.

When (I suppose it could be if) Starmer gets into office he will have the same global, national and party issues to deal with. The left haven't gone away. The unions still wield power and the wars and rogue states rumble on.

 

[youngmafbog]

//The cons appear to be blaming booze and tobacco.//

Well in this case it probably is.  They are of course to blame for that as they incresed the tax, which is inflationary.

 

[New Judge]

"What puzzles me is that they're taking demand-side actions (interest rates) to try and affect something that's caused by supply-side issues (war in the Middle East)."

It's no puzzle at all. They don't have any control over the supply-side issues you mention. Since they must be seen to be "doing something" they do the only thing available to them. Of course inflation might not be quite so bad if one of householders' largest bills - energy - was not articicially inflated by the costs imposed by the ridiculous "Net Zero" plan they appear to continue to persue (despite it being unachievable and of no particular benefit to the problem it sets out to solve). But that, of course, would be off-message.

[royfromaus]

Well, if you are easily confused, it would be.

[gulliver1]

Rishi Sunak is Boasting that he and his Tory Party have cut inflation and even halved it,  Just five hours after official figures show that inflation has risen., More Tory Lies. They just can't help it can they.

[newmodarmy]

//What puzzles me is that they're taking demand-side actions (interest rates) to try and affect something that's caused by supply-side issues (war in the Middle East).//

It's the independent Bank Of England that sets interest rates , not the government. There has been cross party support for this independence for many years.  But  it's the governemnt that sets inflation targets for the Bof E. NJ is right that the supply side is the main issue but demand is a factor too- higher rates will mean less money and hence less demand and will help keep prices down. It's the only tool B of E has.

I'm sure there must be other, less blunt, tools available to economists as well