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By-Tor

Higher Energy Costs = Inflation Busting Bus Ticket

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Local freebie paper today, front page

WILTS and Dorset passengers could be hit with fare hikes of up to six percent and possible cuts to services because of soaring fuel costs.

Owners have reported 11.2% fall in 1/2 yr profits.

Diesel bill risen by £4.7M in 6 months. Every 1p on fuel increases costs by £1M per year.

I strongly believe that we have only seen the beginning of inflationary effects of high fuel costs and the ramifications are going to take at least another 6 months to 1 year to filted through.

Even daft things like when companies renew their packaging contracts and find the cost of bubblewrap has near doubled over the last year.

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Inflation will be negative for the routes that are cancelled, people won't have to spend any money at all to not travel. :ph34r:

Edited by OnlyMe

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LOL,

I like your thinking Onlyme, so one route goes up by 6%, one route goes down by 100%, overall 94% deflation, weighted in the figures will equate to cancelling out the doubling of the cost of tinned food.

Way to go I understand it all now.

Someone fetch a shotgun, its Gordon season.

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Local freebie paper today, front page

WILTS and Dorset passengers could be hit with fare hikes of up to six percent and possible cuts to services because of soaring fuel costs.

Owners have reported 11.2% fall in 1/2 yr profits.

Diesel bill risen by £4.7M in 6 months. Every 1p on fuel increases costs by £1M per year.

I strongly believe that we have only seen the beginning of inflationary effects of high fuel costs and the ramifications are going to take at least another 6 months to 1 year to filted through.

Even daft things like when companies renew their packaging contracts and find the cost of bubblewrap has near doubled over the last year.

By-Tor, and the snowdog?

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By-Tor,

I've only just started analysing the benefits, hedonically adjusted the remaining passenger miles that are travelled will incur a further perceived added value because the reduced congestion created by the non-travellers will mean the journeys will be worth relatively more becuase as will be executed in a shorter timeframe and hence better value.

Heck what price can you put on a few minutes extra shopping. :lol:

Edited by OnlyMe

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Come on down,

The very same.

Onlyme,

And the price of more time available at the shops of course is increased consumer spending, therefore safeguarding the shops employees from redundancy, who then feel a lot safer about borrowing 10x their income to buy a rabbit hutch in a yob ridden warzone. Thus the economy as a whole is just ticketyboo.

Hurrah.

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Come on down,

The very same.

Onlyme,

And the price of more time available at the shops of course is increased consumer spending, therefore safeguarding the shops employees from redundancy, who then feel a lot safer about borrowing 10x their income to buy a rabbit hutch in a yob ridden warzone. Thus the economy as a whole is just ticketyboo.

Hurrah.

Ah, the utter joy in understanding the "New Paradigm" Economy.

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I strongly believe that we have only seen the beginning of inflationary effects of high fuel costs and the ramifications are going to take at least another 6 months to 1 year to filted through.

Even daft things like when companies renew their packaging contracts and find the cost of bubblewrap has near doubled over the last year.

I think it will be going a lot longer than that since the underlying inflation is still being fuelled. What about when the bus fares go up and then the employees of the firm making the bubblewrap demand higher wages? Or the company making whatever is being packed has the same problem? And then whoever buys their stuff and so on... It feeds right throughout the whole economy. Remember that China's oil costs have soared just like elsewhere.

Regards the actual fuelling of inflation, I look at it this way. Suppose you have a leaking fuel tank and you're worried about it catching fire (inflation breaking out). That's a problem in itself. But then some smart person has decided that the best thing to do about the falling level of petrol in the tank is to keep filling it up. So when it finally gives way rather than most of the fuel having leaked out and burnt already, the whole tank full comes out all at once, plus what's already leaked, and the end result is a massive explosion. I see something similar with inflation.

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  • 301 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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