Will the cost of living crisis calm down? Or keep getting worse?

14 comments

1. It will sort itself eventually but when now one can tell.

   So stock on food now before it is too late.

2. Sorry, no help but, got a chuckle from the term “living crisis”. Very appropriate!

3. Nah, we’ll need a new money supply in the next year or two or some sort of rebalancing because inflation is not going to stop rising.

   World production fell off a cliff at the same time that the worlds governments printed tons of money and threw it at the problem of covid. Far too much money and credit chasing far too few goods.

   At the same time because of 2008, interest rates are aleady cut to the bone but cannot be put up too much without making millions of people homeless overnight.

   Imo the govt will let things go as far as they can before stepping in (i.e before insurrections but after rioting) but that point will be already beyond a very uncomfortable moment for a lot of people.

4. Last I heard high inflation is expected for the next year or so, after that it should settle back to around the 2% target. However that is still inflation, prices are not going to come back down.

5. It will get worse.

   Ofgem are going to review (raise) the price cap every three months from October, so household bills will get hit once in the autumn and then again in the depths of winter. Prices are going to continue to go up all year, for both food and petrol.

   It’s spring now and people are already feeling the pinch and choosing not to eat or heat their homes. You can skip a few meals and keep the heating off when it’s warm outside, but once the weather really drops people are literally going to stay inside and die of cold because they can’t afford to do anything else.

   The government have no ideas on how to address this crisis and even if they did they wouldn’t be motivated to do anything with them, because they genuinely believe that people are only ever poor because they’re stupid or lazy.

6. How could be different if they keep doing the same thing

7. Do yourself a favour and dig into the past, these periods come and go , boom and bust. There have been several in my lifetime and there will be plenty more. Tighten your belt and ride it out. Stop watching the news and avoid anything about it online. People were telling me in 1985 that we’d all be eating rice in the next ten years. Or that the Russians would nuke us. Still here so far.

8. I would hope, longer term in like 18 months or, yes.

   It will get MUCH worse later this year, energy prices are certain to go up again in October as the price cap looks backwards at the last period (might be as much as another 30-40% in the new prices). If Russia gain control of key ports in Ukraine then food supplies will be further disrupted.

9. It will get worse in the short term but will sort itself out in the long term.
   Unfortunately, although there will be understandable pressure to do so, increasing wages in the short term is neither feasible nor macroeconomically sensible and would make things even worse than they’ll get anyway.
   Over time (years? decades?) the economic situation will hit equilibrium again either through slower wage growth or the economy, technology and enterprise adjusting to the new reality. Probably a combination of both.

10. It will probably get worse, and the government appears to have very little interest in alleviating the suffering.

11. 2019 was as good as life will ever be again

    No I’m deadly serious. Look at the acceleration in climate change, the global economic cluster fuck and coming recession and so on. It’s a perfect fucking storm and as the recession ends we will be seeing widespread and near annual crop failures worldwide

    Buckle up this isn’t ending soon

12. As someone who lived through the 70s and 80s and saw 25% inflation, yes it will calm down.

13. They are just getting started. 6uild 6ack 6etter.

14. All indications are that it’s going to get worse. Energy and food are certainly both going to continue up in the short term.