INFLATION

The Ukraine situation will hopefully be temporary which should ease transport and some commodity prices. Thus this pressure on inflation should decline. This could be exacerbated by a move to different power sources and new sources of food!

Brexit has reduced the workforce, Covid also led to people making life style changes and giving up work. Although Johnson’s boast of a low unemployment figure, we also have a falling total numbers in the workforce. Demographically the balance between people retiring and those entering the workforce is changing. Therefore there should be an inflationary pressure on wages (although this is way behind inflation). Immigration is at a record high with over a million visa’s issued in the last year. perhaps we need greater automation? How are Italy and Japan coping?

Climate change is only beginning to impact on inflation. Record temperatures across the world are causing crop failures and animal deaths. This is ignoring the impact of climate change and its impact on ecosystems and the food chain.

Sunak has made a gesture towards putting a sticking plaster on the problem, unfortunately it does not seem water proof and will wash off in the next storm. What is needed a fundamental reset of the economy, which many pointed out during the pandemic.

Why the £400 is being handed out to multiple home owners is beyond me. If he wanted it to go to home owners he could have done it via council tax? Second homes are charged differently I believe?

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