Tuesday, March 1, 2011

2011 will be a tough year for British consumers

2011 will be a tough year for British consumers

Life in Britain is getting ever more expensive. Fuel, food and clothing are all shooting up in price. Yet wages aren't riseng to match. And the Bank of England looks unable to come to the rescue. One way or another, consumers are going to suffer, says John Stepek.

Posted by damien @ 02:01 PM (2103 views)
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5 thoughts on “2011 will be a tough year for British consumers

  • Why do they insist on grouping us all together as ‘consumers’? How about savers, pensioners, home (debt) owners, or hard pressed workers – or better still please call us citizens! Are we just a spend thrift mob, to be criticised one minute for our proligate ways, and considered as supporters of the economy the next. These sort of articles p**s me off.!!!

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  • Two points in this article that hit the nail on the head:

    1 “On top of that, analysts at UBS reckon that food price inflation is higher in Britain than in most other economies. “The UK food retail system is demonstrably passing on higher prices than are the food retail systems of other countries.”

    No sh*t Sherlock!

    2. “This massive rate-cutting bonus can’t be repeated, even if the Bank wanted to. Interest rates can’t go any lower, so there’s no way to boost consumer income via lower home loan payments. Short of printing money to repay people’s home loans, the Bank can’t do anything more on this front.”

    Therein lies the catalyst for HPC.

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  • I omitted to say that surely even Merv and his gang dare not print money to repay people’s home loans.

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  • general congreve says:

    @2 – Maybe not repay people’s loans, perhaps just give it to the banks to cover non-performing loans. In essence that is what has already happened with QE.

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  • What you are seeing is a big shift of taxation from the rich to the “middle classes”. If you are rich enough, you pay your family for unpaid work in your company, transferred to a tax haven. Everybody else pays their share – public servants, fork lift truck drivers, checkout staff at supermarkets etc, etc.

    Meanwhile food prices go up (look at the price of coffee since feb 2010) thanks to speculators using lots of QE money from our (hard up) banks.

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