UK’s Inflation Problem Persists. Does It Even Matter?
Inflation fell markedly (and in some sense mechanically) in the UK last month, but another increase in services price growth made it difficult to put a positive spin on the figures.
Headline CPI rose 6.8% YoY in July, ONS said Wednesday. That was the slowest 12-month rate since February of 2022, but nevertheless counted as an upside surprise, the fifth in six months.
Falling gas and electricity prices were obviously a big factor. The annual rate of food inflation eased to 14.9%, still harrowin
Same old story across the pond. Inflation in goods and services is cultivated and ultimately welcomed if in the form of corporate profits, but when it starts showing up in salaries and wages, it’s a giant macro problem that cannot, and will not, be sustained.
Indeed, that’s a bit of a double standard, isn’t it?
100%
Or, you know, the government could try and negotiate with industries and unions to spread the pain across profit margins, real wages and tax bills… but that would require admitting that we are managing capitalism…
I still put the UK’s problem down to Brexit. They purposely narrowed the scope of their markets to enhance their desire for Edwardian independence from the world. The world, it turns out, couldn’t care less. So now they are not a powerful independent nation once again as they wished, but an isolated worn out idea. There is no safety net left (and little collective wisdom either). This country’s story is a lesson in the danger to be found in listening to the trash silly political parties spew. There a couple of those groups closer to home as well, both spewing a constant stream of hazardous waste. No collective wisdom to be found here either.
I live on this island and you’re so right. Were insular by nature and insular in attitude. There is so much ignorance and ennui here these days. I’m shocked what I hear every day.
I recently hiked the Coast to Coast with 11 English and 2 other Americans. Several of the English trekkers told me that Brexit passed due to the weather on the day of the vote. (As the opener to the conversation- this immediately got my attention!)
Rainy and miserable in London (where majority were informed and against Brexit), therefore didn’t get out to vote. Sunny and beautiful in northern England (where majority elderly population lives- who were uninformed and in favor of Brexit) who had a very strong showing at the polls.