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Food Inflation Could Hit 7Pc By Year's End

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Food could go up 7%, factory gate inflation fallen to "only" 4.7% - so room for more quantitiative shitting from the Bankrupt of England. Take your pick.

Going to end really, really badly.

#

http://www.telegraph.co.uk/finance/newsbysector/retailandconsumer/7996060/Food-inflation-to-hit-7-by-years-end.html

Food inflation could hit 7pc by year's end

Annual food inflation could reach 7 per cent later this year, a leading City economist has warned.

Angela Monaghan

Published: 8:42AM BST 11 Sep 2010

Comment

Food inflation to hit 7pc

The Food and Agriculture Organisation food index, which measures prices of meat, dairy products, cereals, oils and fats, and sugar on a monthly basis, rose 22pc in August.

The jump, from 1.7 per cent in June, is likely if global food commodity prices continue to rise, said Simon Ward, chief economist at Henderson.

Rising food costs could have the effect of pushing up the consumer prices index (CPI), the official measure of inflation, to 4 per cent – double the Bank of England's 2 per cent target, warned Mr Ward.

The impact on household budgets could even persuade the Coalition to cancel its planned rise in VAT, he added.

"Such an increase [in food prices] would hit consumer spending and recovery prospects and could destabilise inflationary expectations," said Mr Ward.

"This could warrant postponing or cancelling the coming VAT hike."

The Food and Agriculture Organisation food index, which measures prices of meat, dairy products, cereals, oils and fats, and sugar on a monthly basis, rose by an annual 22 per cent in August, the fastest rate since September 2008.

Food prices have increased further in September, Mr Ward said.

..................................................................................

Slower inflation clears way for MPC to boost economy

http://www.independent.co.uk/news/business/news/slower-inflation-clears-way-for-mpc-to-boost-economy-2076494.html

By David Prosser, Business Editor

Saturday, 11 September 2010

Deflate Your Energy Bills

Cut Business Electricity/Gas Costs.Compare, Switch & Save Today...

MakeItCheaper.com/Gas_Electricity

Factory gate inflation fell to a six-month low in August, official data revealed yesterday, providing further ammunition to campaigners who want the Bank of England's Monetary Policy Committee to embark on a new round of quantitative easing to stimulate the UK's faltering economy.

The price of goods coming off the production line rose 4.7 per cent year-on-year in August, down from 5 per cent in July and the lowest price increase since February. Input price inflation – the cost of materials and energy – remains higher, at 8.1 per cent, but was also down sharply compared with July, when it was 10.8 per cent.

http://www.independent.co.uk/news/business/news/slower-inflation-clears-way-for-mpc-to-boost-economy-2076494.html

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The percentage of household income spent on food in the UK is one of the lowest in the world. So the average UK consumer still has a considerable margin in their food budget before standards of living are effected.

Expect food riots in poorer countries. 60 years of the UN and people are still starving to death. Remind me, what the hell are they for?

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The percentage of household income spent on food in the UK is one of the lowest in the world. So the average UK consumer still has a considerable margin in their food budget before standards of living are effected.

Expect food riots in poorer countries. 60 years of the UN and people are still starving to death. Remind me, what the hell are they for?

Budgets are skewed remember, living on the edge, debt, future earnings, low savings and increasingly little or no pensions provision - a huge proportion of income pissed up the property wall in interest / costs. The sector breakdowns you see for CPI index calculation are not work the paper they aren't written on. The public will be a lot more sensitive to this that the economists and bankers think - lying and obfuscation is not going to blind reality.

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The Heinz soup that was on offer at four for £2 less than a year ago in several supermarkets is almos universally 82p a can now, (a 64% increase). This was ideal pauper's sustenance, I lament the demise of these offers.

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The percentage of household income spent on food in the UK is one of the lowest in the world. So the average UK consumer still has a considerable margin in their food budget before standards of living are effected.

Expect food riots in poorer countries. 60 years of the UN and people are still starving to death. Remind me, what the hell are they for?

well not really because the excess has just gone into property via lack of sound taxation, the uk consumer may seem better of whilst they can take on debt, remove that ability which is happening and they are just as unable to service these increases

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The amount of food wasted in this country means food prices would have to triple before we could no longer compensate by less wastage.

Oh and obese people may have to eat a little less.

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I wish certain posters would stop posting about the deflation myth.

Inflation is the only outcome possible from here , last week it was train fares going through the roof now it's food.

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Almost all fod is VAT free and given the production chain claim any VAT back, l don't see how it has anything to do with "warranting a cancellation of the VAT hike.."

We best print more money, so we can all afford to buy this more expensive food. Yes that was actually the logic used for previous historic debasements and no doubt it will be used again.

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I wish certain posters would stop posting about the deflation myth.

Inflation is the only outcome possible from here , last week it was train fares going through the roof now it's food.

thats because you are focusing on one aspect. Deflationists mean the amount of "Money" about...and credit appears to be falling. thats deflation.

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I wish certain posters would stop posting about the deflation myth.

Inflation is the only outcome possible from here , last week it was train fares going through the roof now it's food.

Well Scepticus has retired for a while so at least you'll get some relief.

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thats because you are focusing on one aspect. Deflationists mean the amount of "Money" about...and credit appears to be falling. thats deflation.

I thought deflation was when prices were falling - Not credit contracting

If everything I buy is going up in price then as far as I am concerned that's inflation regardless of how much credit is available.

:)

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I thought deflation was when prices were falling - Not credit contracting

If everything I buy is going up in price then as far as I am concerned that's inflation regardless of how much credit is available.

:)

in general, if ALL prices are rising, then thats the value of your £ falling.

In my view, deflation is where the money supply reduces....this causes liquidity shortage for people overlent...also, you see things like Biflation, which of course, is impossible. those lowering and rising prices of hi order and low order items are the signs of the Austrian BUST.

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in general, if ALL prices are rising, then thats the value of your £ falling.

In my view, deflation is where the money supply reduces....this causes liquidity shortage for people overlent...also, you see things like Biflation, which of course, is impossible. those lowering and rising prices of hi order and low order items are the signs of the Austrian BUST.

Well thats what will be happening if the stock market and house prices fall while the price of food, fuel and goods and services rise.

This is what I am expecting to happen I suppose.

I have been describing it as Stagflation as I expect economic growth will also be stagnant.

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Well thats what will be happening if the stock market and house prices fall while the price of food, fuel and goods and services rise.

This is what I am expecting to happen I suppose.

I have been describing it as Stagflation as I expect economic growth will also be stagnant.

Of course, government action muddies the picture...cash given to banks, hasnt been lent...so they spent it in the stock market and bonds...the first has bubbledof course, and the second is risk free as CBs, offer to buy the crud back..

sorry, having trouble typing as Ive drunk 1/4 bottle of Get27 cos Mrs Loo insists on having Simply Cum Dancing on...with Ann Widdecombe and that anorexic hostess.

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Of course, government action muddies the picture...cash given to banks, hasnt been lent...so they spent it in the stock market and bonds...the first has bubbledof course, and the second is risk free as CBs, offer to buy the crud back..

sorry, having trouble typing as Ive drunk 1/4 bottle of Get27 cos Mrs Loo insists on having Simply Cum Dancing on...with Ann Widdecombe and that anorexic hostess.

I'd delect her

(not Add Widdecombe) :o

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The impact on household budgets could even persuade the Coalition to cancel its planned rise in VAT, he added.

Strange, I didnt think there was vat on most food (and by food I am meaning real food not all the multi processed sugar and fat filled crap that many people seem to eat instead of food just now).

Maybe if more people cooked their own food they would save some cash and would not all have arses the size of shopping trollies.

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Weekly groceries budget for us is about £15 per person per week, and we eat very well. A rise of 7% would be an extra quid per week. If this is what it takes to get the BoE to start raising interest rates, bring it on.

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Weekly groceries budget for us is about £15 per person per week, and we eat very well. A rise of 7% would be an extra quid per week. If this is what it takes to get the BoE to start raising interest rates, bring it on.

I can't get a decent sirloin for less than £4, There's no way on earth I could eat "very well" for £15 a week. Adequately, maybe, healthily definitely but well?

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thats because you are focusing on one aspect. Deflationists mean the amount of "Money" about...and credit appears to be falling. thats deflation.

No - deflation/inflation relates to 'money' vs 'goods and services'.

And credit is just one part of the overall money supply - how much has money supply fallen by, pray tell?

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I can't get a decent sirloin for less than £4, There's no way on earth I could eat "very well" for £15 a week. Adequately, maybe, healthily definitely but well?

+1

Even when I was a student in the late 90's I used to spend at least £20 a week at the supermarket. These days I can easily spend £40 a week and that's just basic stuff, there might be a couple of ready meals in there but certainly nothing fancy.

How anyone can eat well for £15 a week is beyond me.

Edited by monstermunch

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I can't get a decent sirloin for less than £4, There's no way on earth I could eat "very well" for £15 a week. Adequately, maybe, healthily definitely but well?

Surprisingly it's not that hard, starting in January we decided to start cooking everything from basic ingredients. It was meant to be a health/cookery kick, not a monetary one, but it's worked out cheap anyway. My girlfriend is veggie so I only eat 3/4 meat meals a week. When I do have meat the portions are fairly small, around 150-200g per meal. I buy big portions of meat and freeze it down in one man portions for future consumption. I usually eat minced beef or lamb, pork loin (can very often get this on yellow sticker for some reason), good quality sausage from a continental shop, lamb's liver (soak in water for a couple of hours before you cook/freeze to get the blood out, tastes great!), and a rump steak once a fortnight as a treat. For veggie protein we use kidney beans, chickpeas, lentils, mushrooms, and soya mince.

We are lucky that there is a fruit and veg market just a few minutes from the big supermarket so we always go there first. We live in an area with a lot of poor people from a big mix of ethnic origins, they shop competitively and keep local prices down. We eat a lot of fruit, about 2-3 pieces per person per day, and often have salad with meals. We cook with lots of spices for Mexican/Middle Eastern/Indian/East Asian dishes and buy these very cheaply as 400g bags in ethnic shops. We buy big sacks of rice which last for ages. I usually cook too much on purpose and have leftovers for lunch the next day.

In terms of why the cost is so low compared to how we used to cook, a big part of it is scrupulous planning of meals and buying only what we need for these. We waste very little food nowadays. We don't buy any snacks/cakes/biscuits/yogurts/cheese/ham/desserts/alcohol (I only drink in pubs). We have also experimented a lot with the Tesco Value range and found that generally it's good for fairly unadulterated basic ingredients like pasta, most fruits (almost always just the ugly ones but taste the same), porridge, canned beans. I wouldn't touch any Tesco Value thing with more than 2 ingredients with a barge pole.

What do I mean when I say we eat "very well"? Well we eat a lot of protein (mostly plant derived) on my insistence. There is a lot of fresh fruit and veg in our diet as we can get these locally cheaply. The food we eat tastes good as we are learning how to use spices pretty well. So it's fresh and enjoyable, I suppose that's what I mean by eating well. Anti-carb types might not like that we do eat potatoes/pasta/rice/flatbread with every meal, it's not the main part of the meal but it is there. I have thought about trying to change this but the gf likes it so might be a losing battle. Probably most people would want to eat more meat than I do, that's a personal choice but it will drive the cost up. The average Western diet has more meat in it than you need, that's all I can say. I cycle almost everywhere and feel good doing it.

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  • 152 Brexit, House prices and Summer 2020

    1. 1. Including the effects Brexit, where do you think average UK house prices will be relative to now in June 2020?


      • down 5% +
      • down 2.5%
      • Even
      • up 2.5%
      • up 5%



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