Inflation

I've asked the ai:

What is the cause of inflation?

The cause of inflation is an increase in money supply.

Or too much money chasing too few goods.

Originally Posted by tatty

Or too much money chasing too few goods.

The AI has made the assumption that the supply remains fixed I guess.

https://twitter.com/lopp/status/1539532129155039235

Originally Posted by armchair

https://twitter.com/lopp/status/1539532129155039235

What's with the price of cheese?


Also, would have been better if they didn't change the scale towards the end, masks the true increases in the last few months. Measley will be having palpitations if he sees that

I’m going on the orange juice diet.

If all the Major Central Banks of the world increase rates and we don’t then Sterling will depreciate against all the major currencies especially the US Dollar due to the Feds now hawkish outlook.

If Sterling continues to depreciate then all our imports are going to cost more.

More interest rates rises are inevitable in this scenario as Sterling will need to be protected.

Good news for savers, insurance companies, banks and insolvency practitioners.

Bad news for borrowers.

What will happen to house prices?

Surely they must increase on average?

New build costs will go through the roof

People still need somewhere to live

Doesn’t bother me - Aberdeen is a housing economy solely linked to the oil price/activity - but the rest of the country must be due a housing boom?

Not if mortgage rates rise significantly

Originally Posted by Danoli

If all the Major Central Banks of the world increase rates and we don’t then Sterling will depreciate against all the major currencies especially the US Dollar due to the Feds now hawkish outlook.

If Sterling continues to depreciate then all our imports are going to cost more.

More interest rates rises are inevitable in this scenario as Sterling will need to be protected.

Good news for savers, insurance companies, banks and insolvency practitioners.

Bad news for borrowers.

the us already lifted rates three times the boe increase.

Originally Posted by My Name is Heath

the rest of the country must be due a housing boom?

wtaf? bar a couple of "corrections", that is all we've f***ing had.

as noted, interest rate rises won't help anyone's mortgage affordability, but then the top of the market is driven by foreign money anyway. which is shameful. cash buyers will love it. who has cash? is it poor people? I'm going to say that, by definition, the answer might be no.

New house builders who currently can't build quick enough in the North West are starting to see a slow down in sales, so they are reticent to put prices up.

There are shortages of labour in most trades, and supply issues on most items. Our (plumbing) materials costs have gone up approx 30% in 12 months, labour 15% (due to competition from other subbies poaching).

Still other subbie companies continue to undercut each other. Jobs f***ed, I'm giving it 5 more years and by then should hopefully just be able to drive for DPD or some such for pocket money.