Cost of living crisis

markharding557

CLAPTON wrote: »

Much of the present price inflation is due to imported goods (oil, commodies etc); this truely means people will have to change their spending habits.
Where possible they will cut back on imported goods as these have increased more than domesticly produced goods.
UK made and sourced goods and services will be in increased demand hence increasing employment

Not all negative then.

I think service industries will suffer too because when you have to cut back it's the non necessities which are first in line

shortchanged_2

"The average homeowner spent just 15.4% of their take-home pay on mortgage repayments in December, the lowest level since Barclays first started carrying out the analysis in 2002"

Unfortunately I think this goes to show that there is currently a large proportion of people who are on low rate trackers and SVR's.

And who thinks interest rate rises are not going to affect many?

Silverbull

markharding557 wrote: »

I think service industries will suffer too because when you have to cut back it's the non necessities which are first in line

I think house prices will suffer too because when you cut back there is less credit available for people to buy a property.

Conrad

tracey3596 wrote: »

For example clothing and shoes; we all need clothes and shoes, but you try buying British at prices everyone can afford. Impossible!

And this is the reason that Union calls for higher wages and better perks would make UK goods and services less affordable.

Conrad

Pobby wrote: »

On the other hand, folks who have been part of private pensions are seeing dreadful returns, I won`t mention savers.

Leftist calls for less profits for big business and higher Taxes for Banks would lead of course to lower dividends and in turn have a negative impact on pension fund returns.

fc123

tracey3596 wrote: »

Quote "UK made and sourced goods and services will be in increased demand hence increasing employment " .....
in theory yes; great!

In practice? Well my question would be .... WHAT U.K. sourced goods?
We don't make much of anything any more.
For example clothing and shoes; we all need clothes and shoes, but you try buying British at prices everyone can afford. Impossible! And I could go on; we have (had to?) move away from manufacturing because of competition from countries with cheaper labour.

Changeing spending habits is inevitable though, I agree.

I'm not suggesting ALL is negative, but we are ALL going to have to change our habits and accept the changeing world.

But it was a bit chicken and egg...what came first? Was it demand for lower prices (that led companies to source more and more off shore?) or simply sourcing off shore to make more margin and then giving the consumer lower prices to encourage more spend due to increased competition in their market?

From my memories over the past 15 years or so it was the shops that offered the low prices to encourage more consumption. Just off the cuff didn't M+S stop using SR Gent to manufacture much of their product in UK as Next were cleaning up selling to their core customer base in middle England (both on a style level and on quality at lower price). Then Zara came along and M+S were on the run. Their priority is to satisfy their shareholders so they did what was best for their business....shut UK making and moved the lot overseas. Customers happy as M+S were now 'competitive'. Problem solved.

One of the snags about the low price/high volume format is if the volume drops. You are just stuck with a lot less units selling at lower prices.
Prices are now rising across all levels of the clothing sector as demand for volume reduces (and cotton/overseas making prices are up a bit too). Retailers have got to balance the books somehow.

Graham_Devon wrote: »

Trouble with this is, we don't really produce much food. Don't really produce many clothes, infact there was a programme on the TV the other day about the last biggish clothing factory in the UK. Don't produce our own oil and don't really produce our own gas or electric.

So most of the stuff that is being hit by inflation, we can't really buy in the UK. Not without paying a much higher ticket price for the privilege (food and clothing for example).

Mass market stuff is mostly made overseas but a whole new trend/fashion is emerging and building momentum....and niche underground trends often become mainstream in the future. The interest in small niche non mass produced fashion is huge at the moment.

OK, the big guys will try to 'fake' niche at some point (as they did 'vintage' stylee) but customers know the real thing.

Always..... if something is everywhere, affordable and accessible it isn't going to be as wanted as something rarer, more obscure/harder to source or come by.

The whole foodie movement started by people and then in the mainstream like Hugh FW have really changed some peoples way of shopping in that Tesco is almost the last resort for some people and BOGOF's are really very very uncool as they are seen to encourage waste and over consumption....which, in turn is not a very modern way to be either.

JonnyBravo

Ah..... what a shame.....

it seems as if crazygaijin (the OP) is no more. He is PPR.
A quick check shows that Silverbull, LLubrevlis, novazombie, RDB, stellaconcepts, Yoshua, cardsharps et al are also mysteriously now PPR. I guess someone finally ran an IP check. Anymore that I can't remember?
I shall miss crazygaijin. His lack of a consistent story (at various times he was a 64 yr old asking about benefits, then had a one year old but then was living in Japan.... honest) gave us some valuable insights to his mind and led to one of my favourite revelations.
https://forums.moneysavingexpert.com/discussion/comment/20861161#Comment_20861161

May I just highlight a few outstanding cases. If the powers that be would like to check Mr English, SilverStandard, smeagold and the rather appropriately named Loopgames I think they'll find a host of names under that address too.

Hectors_House

StevieJ wrote: »

Then again was praying for a recession to induce falling house prices worth it ?

The recession was caused by the distorted housing market as far as I can tell.

House prices falling will be the end result of many other collapses within our skewed economy IMHO - the problem being that our economy will be really down the toilet by that time.

blueboy43

JonnyBravo wrote: »

Ah..... what a shame.....

it seems as if crazygaijin (the OP) is no more. He is PPR.
A quick check shows that Silverbull, LLubrevlis, novazombie, RDB, stellaconcepts, Yoshua, cardsharps et al are also mysteriously now PPR. I guess someone finally ran an IP check. Anymore that I can't remember?
I shall miss crazygaijin. His lack of a consistent story (at various times he was a 64 yr old asking about benefits, then had a one year old but then was living in Japan.... honest) gave us some valuable insights to his mind and led to one of my favourite revelations.
https://forums.moneysavingexpert.com/discussion/comment/20861161#Comment_20861161

May I just highlight a few outstanding cases. If the powers that be would like to check Mr English, SilverStandard, smeagold and the rather appropriately named Loopgames I think they'll find a host of names under that address too.

:rotfl:

Top stuff. Lovely to see a multiple poster outed in such spectacular style.

blueboy43

Graham_Devon wrote: »

Trouble with this is, we don't really produce much food. Don't really produce many clothes, infact there was a programme on the TV the other day about the last biggish clothing factory in the UK. Don't produce our own oil and don't really produce our own gas or electric.

So most of the stuff that is being hit by inflation, we can't really buy in the UK. Not without paying a much higher ticket price for the privilege (food and clothing for example).

1) It doesn't matter where food or energy is produced, if commodity prices go up, they go up.

2) UK was self sufficient in gas until 2010

3) God help us if people think the UK's future is making clothes. It was poorly paid work in the 1960's never mind 50 years later.