Democorruptcy Posted December 7, 2010 Share Posted December 7, 2010 Wont massively impact on household budgets by itself, but it comes amongst general other inflation, and it will certainly be Mervs excuse to keep interest rates on hold for at least another 6 months, possibly all 2011. It will impact psychologically at the petrol pumps if the cheapest juice in town hits £1.25, I think people are already resigned to £1.20, but I think this is when people start having an OMG moment about inflation, at the petrol station. Diesel is 123.9 today where I live up 2p since I put some in last week. Oil up to $92 a barrel today. Fuel duty increases by 0.76p on Jan 1st. VAT by 2.5% Jan 4th. I reckon diesel will be in the £1.30s a litre before February. Quote Link to comment Share on other sites More sharing options...
kzb Posted December 7, 2010 Share Posted December 7, 2010 Remember when they CUT VAT to 15% ? Initially every store made great play out of putting this on your receipt so you noticed they had cut prices. But after a few short weeks, this stopped, and prices crept back to where they were. Also notice how ALL prices end in 95 or 99. I predict that it will be used initially as an excuse for large price hikes, perhaps with some exceptions where they will say they are swallowing the increase for publicity purposes. Petrol and diesel will definitely go up, and by more than the VAT rise. Then prices will creep back to their market rates. Prices are based on what they can get away with charging in the competive market, NOT what they cost to produce. Nike trainers for example cost £2.40, but you are willing to spend £140 on them. Quote Link to comment Share on other sites More sharing options...
bricor mortis Posted December 7, 2010 Share Posted December 7, 2010 (edited) Diesel is 123.9 today where I live up 2p since I put some in last week. Oil up to $92 a barrel today. Fuel duty increases by 0.76p on Jan 1st. VAT by 2.5% Jan 4th. I reckon diesel will be in the £1.30s a litre before February. Oh. I paid £ 1.18 for unleaded at Asda today ( Bristol ) I honestly believe it will effect people's decision making as regards obtaining mortgages as they see the price of juice rising constantly and seemingly uncontrollably. Even if they are told general prices are falling ( unlikely ) so long as juice goes up they wont believe it. Edited December 7, 2010 by bricor mortis Quote Link to comment Share on other sites More sharing options...
winkie Posted December 7, 2010 Share Posted December 7, 2010 (edited) Oh. I paid £ 1.18 for unleaded at Asda today ( Bristol ) I honestly believe it will effect people's decision making as regards obtaining mortgages as they see the price of juice rising constantly and seemingly uncontrollably. Many people now will seriously have to consider for the first time the cost of getting to work...transport costs will impact many simple decisions that did not even cross our minds in the past....imo more will be working from home and in local hubs in the future...traveling to offices every day in large cities will become unnecessary...innovation will see to that. It's not as if we can like some of us can add it to expenses...... Edited December 7, 2010 by winkie Quote Link to comment Share on other sites More sharing options...
neil324 Posted December 7, 2010 Share Posted December 7, 2010 Fuel costs to work for me are a problem. I'm a bricklayer and with wages being cut by 30%, then you never work on your door step, this year i have turned down work because of the distance needed to travel. When you combine the two wage cuts and fuel costs your not far of minimum wage, when you work like a japanese prisoner of war. erm no thanks m8. Quote Link to comment Share on other sites More sharing options...
winkie Posted December 7, 2010 Share Posted December 7, 2010 I know of three people who now work from home most of the week....how many spare bedrooms are being turned into offices? When looking for tradesmen I purposely look for local people recommended if possible...preferably someone who is not VAT registered, I like to help the small business person if I can, and I find they often provide the best service and customer care. Quote Link to comment Share on other sites More sharing options...
pl1 Posted December 7, 2010 Share Posted December 7, 2010 Many people now will seriously have to consider for the first time the cost of getting to work...transport costs will impact many simple decisions that did not even cross our minds in the past....imo more will be working from home and in local hubs in the future...traveling to offices every day in large cities will become unnecessary...innovation will see to that. It's not as if we can like some of us can add it to expenses...... I think the "nail in the coffin" will indeed be in petrol prices. I too have seen weekly increases in prices. £1.30 a litre can't be far off now. We only had half an inch of snow and that was all the excuse my local needed last week to put fuel up by 3p a litre from 6 day's before. Quote Link to comment Share on other sites More sharing options...
endgame Posted December 7, 2010 Share Posted December 7, 2010 The solution to the crisis is to cut taxes not increase them. Higher taxes make it harder to get a buisness to work so it crushes buisness activety. I dont know why people bother with high street stores. What with rent, council tax, VAT and all the other bills. Quote Link to comment Share on other sites More sharing options...
Van Posted December 7, 2010 Share Posted December 7, 2010 +2.5% VAT +6.8% rail fares It's all good. Quote Link to comment Share on other sites More sharing options...
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