Confused about interest rate increase

The_Green_Hornet

whitehartal said:

And I'm seeing the same Poppystar.

Last Thursday I went to a large retail park near Llantrisant in South Wales. I've been there many times over the last 20 years, but - apart from one Christmas Eve around 10 years ago - I've NEVER seen it so busy. There must be over 1000 parking spaces...all full - cars queuing onto the road outside...my wife and I said "Where's the cost of living crisis?"!!! This was around 2pm on a Thursday!!!

Mainly over-hyped in the media.

eskbanker

whitehartal said:

Last Thursday I went to a large retail park near Llantrisant in South Wales. I've been there many times over the last 20 years, but - apart from one Christmas Eve around 10 years ago - I've NEVER seen it so busy. There must be over 1000 parking spaces...all full - cars queuing onto the road outside...my wife and I said "Where's the cost of living crisis?"!!! This was around 2pm on a Thursday!!!

That doesn't seem a particularly relevant litmus test, in much the same way that some people respond to icy conditions with "Haha, so much for all the talk of global warming" as if one disproves the other.

Looking at the queues at your local food banks might be more indicative, or reviewing stats from the likes of the Trussell Trust or the Joseph Rowntree Foundation....

https://www.trusselltrust.org/news-and-blog/latest-stats/mid-year-stats/

or even the government's own analysis:

https://www.ons.gov.uk/peoplepopulationandcommunity/wellbeing/articles/howarefinancialpressuresaffectingpeopleingreatbritain/2023-02-22
https://www.ons.gov.uk/peoplepopulationandcommunity/personalandhouseholdfinances/expenditure/articles/impactofincreasedcostoflivingonadultsacrossgreatbritain/september2022tojanuary2023

jimjames

The_Green_Hornet said:

whitehartal said:

And I'm seeing the same Poppystar.

Last Thursday I went to a large retail park near Llantrisant in South Wales. I've been there many times over the last 20 years, but - apart from one Christmas Eve around 10 years ago - I've NEVER seen it so busy. There must be over 1000 parking spaces...all full - cars queuing onto the road outside...my wife and I said "Where's the cost of living crisis?"!!! This was around 2pm on a Thursday!!!

Mainly over-hyped in the media.

I'm not sure it is over-hyped, I think it is a very real issue but as mentioned already there is a big divergence between the haves and have-nots. Some people really struggling with energy bills and increase in food costs etc, others making the most of getting a good interest rate on savings even if it is losing buying power along with not having a mortgage. It could also be that fixed rate mortgages have deferred the pain for many people. But I'm seeing the same as some of the previous posts, very busy retail and restaurants even places that are not cheap but I suspect it's a rather false perspective with those struggling becoming invisible.

Nebulous2

jimjames said:

The_Green_Hornet said:

whitehartal said:

And I'm seeing the same Poppystar.

Last Thursday I went to a large retail park near Llantrisant in South Wales. I've been there many times over the last 20 years, but - apart from one Christmas Eve around 10 years ago - I've NEVER seen it so busy. There must be over 1000 parking spaces...all full - cars queuing onto the road outside...my wife and I said "Where's the cost of living crisis?"!!! This was around 2pm on a Thursday!!!

Mainly over-hyped in the media.

I'm not sure it is over-hyped, I think it is a very real issue but as mentioned already there is a big divergence between the haves and have-nots. Some people really struggling with energy bills and increase in food costs etc, others making the most of getting a good interest rate on savings even if it is losing buying power along with not having a mortgage. It could also be that fixed rate mortgages have deferred the pain for many people. But I'm seeing the same as some of the previous posts, very busy retail and restaurants even places that are not cheap but I suspect it's a rather false perspective with those struggling becoming invisible.

That's what I said in the previous deleted thread. People who are struggling are "hidden in plain sight." 

metrobus

The_Green_Hornet said:

whitehartal said:

And I'm seeing the same Poppystar.

Last Thursday I went to a large retail park near Llantrisant in South Wales. I've been there many times over the last 20 years, but - apart from one Christmas Eve around 10 years ago - I've NEVER seen it so busy. There must be over 1000 parking spaces...all full - cars queuing onto the road outside...my wife and I said "Where's the cost of living crisis?"!!! This was around 2pm on a Thursday!!!

Mainly over-hyped in the media.

Totally agree.

It’s an unwillingness to adapt crisis more like it.

And when we have the likes of the greedy, lazy teachers constantly threatening strikes unless they get increases to their already highest in Europe pay packets inflation will always stay high.

dcs34

I think it's more that the media commentariat class are far more likely to be home-owning, mortgage-having, car financing types than food bank-using, student loan-repaying, rent-paying types. 

Furious indignation about small mortgage rage increases when the average under-30 is paying more in rent each month than those with a mortgage.

Albermarle

The_Green_Hornet said:

whitehartal said:

And I'm seeing the same Poppystar.

Last Thursday I went to a large retail park near Llantrisant in South Wales. I've been there many times over the last 20 years, but - apart from one Christmas Eve around 10 years ago - I've NEVER seen it so busy. There must be over 1000 parking spaces...all full - cars queuing onto the road outside...my wife and I said "Where's the cost of living crisis?"!!! This was around 2pm on a Thursday!!!

Mainly over-hyped in the media.

I know what you mean but not sure overhyped is quite the right expression.
It definitely exists and has had a serious effect on a section of society. How can the rise in prices for basics have any other effect, despite increases in Government help?
The problem  with the media, is firstly they try and find individual cases where people are having a particularly hard time, and present them as an example of some kind of more widespread desperate situation, that is more prevalent than it really is.
Secondly they try and be a bit 'we are all in it together' with highly paid TV presenters making ludicrous comments about not having the heating on at home etc

Albermarle

whitehartal said:

And I'm seeing the same Poppystar.

Last Thursday I went to a large retail park near Llantrisant in South Wales. I've been there many times over the last 20 years, but - apart from one Christmas Eve around 10 years ago - I've NEVER seen it so busy. There must be over 1000 parking spaces...all full - cars queuing onto the road outside...my wife and I said "Where's the cost of living crisis?"!!! This was around 2pm on a Thursday!!!

I think the key factor is that the unemployment rate is low. Despite cost of living increases, if there is a reasonable wage coming in the the household each month, people can still manage. Cash flow means debts/bills  can be paid, even if they are maybe getting bigger.

Some expensive sports events, like the Cheltenham Festival have seen a marked drop in numbers, so some discretionary spending is under pressure,

Beddie

Many people have been cushioned from rate rises and inflation due to very generous benefits, mainly universal credit.

Yes, some fall through the gaps and need more help than they get, for sure. But so many people have fixed rate mortgages, so they've not had a rise yet, and others have had nice benefits on top of benefits over the last 3 years.

Single parent with 2 kids, with childcare costs, working 16 hours a week at £10ph and renting, gets about 2K per month in UC. Add their income from work and that's a decent amount to live on. That's before all the extra money for fuel costs that's been paid this year.

By contrast, single working people with no kids, who earn just enough to miss out on the benefits bonanza, are usually the ones struggling the most.

sevenhills

Nebulous2 said:

jimjames said:

The_Green_Hornet said:

whitehartal said:

And I'm seeing the same Poppystar.

Last Thursday I went to a large retail park near Llantrisant in South Wales. I've been there many times over the last 20 years, but - apart from one Christmas Eve around 10 years ago - I've NEVER seen it so busy. There must be over 1000 parking spaces...all full - cars queuing onto the road outside...my wife and I said "Where's the cost of living crisis?"!!! This was around 2pm on a Thursday!!!

Mainly over-hyped in the media.

I'm not sure it is over-hyped, I think it is a very real issue but as mentioned already there is a big divergence between the haves and have-nots. Some people really struggling with energy bills and increase in food costs etc, others making the most of getting a good interest rate on savings even if it is losing buying power along with not having a mortgage. It could also be that fixed rate mortgages have deferred the pain for many people. But I'm seeing the same as some of the previous posts, very busy retail and restaurants even places that are not cheap but I suspect it's a rather false perspective with those struggling becoming invisible.

That's what I said in the previous deleted thread. People who are struggling are "hidden in plain sight." 

At least now that it's Spring, many younger people will be able to turn their heating off.