Category Archives: Inflation

UK watchdog to examine whether telecoms companies mislead customers

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Cap says mobile and broadband users must get clear information about inflation-busting bill increases

The UK advertising watchdog has launched an investigation into whether telecoms companies are misleading consumers about inflation-busting bill increases when promoting deals in their marketing campaigns.

Telecoms companies make billions of pounds annually by instituting price rises to mobile and broadband bills midway through contract periods – increases that will add to the biggest squeeze on the cost of living facing households in generations.

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Liz Truss holds first cabinet meeting as Thérèse Coffey denies claim PM put loyalty before competence – UK politics live

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Health secretary says Truss did not focus too much on rewarding friends as new ministers attend first cabinet meeting

According to a report by Jason Groves in the Daily Mail, Liz Truss may announce an end to the ban on fracking this week. During the leadership campaign she said she wanted to allow fracking, but only in areas where there was a clear public consensus in favour.

On the Today programme this morning Lord Deben, the Tory peer who chairs the Committee for Climate Change, said fracking was not a solution to the UK’s energy problems. He explained:

The price of gas is not affected by the relatively small amount that we can get, in addition to the North Sea or indeed from fracking.

This is an international price and we would be paying the same price we got out of the fracked gas as we are for the gas we’re using now.

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Soaring costs could strip ‘basic dignity’ from millions in UK

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Annual income survey finds national minimum wage will often fail to cover even a ‘no frills’ lifestyle

Soaring inflation and energy costs will leave millions of people on low incomes thousands of pounds short of what the public say is the minimum amount needed to live with basic dignity in the UK this winter, according to an annual survey.

The annual Minimum Income Standard study is based on intensive deliberations by groups of socially representative UK residents, who agreed what a normal, no-frills lifestyle would cost and look like in 2022, taking into account housing, food, clothing, household goods, transport and social participation.

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Inflation pushes average cost of filling Panini 2022 World Cup sticker album to £870

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Five-sticker packs for football tournament in Qatar are 12.5% more than for Russia 2018

Inflation has come for the football sticker album. Collecting and completing the official Panini Fifa World Cup Qatar 2022 album will cost fans an average of about £870.

Panini, which first produced a World Cup sticker album for the 1970 tournament in Mexico, has priced five-sticker packs for the Qatar 2022 album at 90p each. That is a 12.5% increase on the 80p cost of a five-sticker pack for the Russia 2018 album. For Euro 2016 a pack cost 50p.

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UK food price inflation hits highest level since global financial crash

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Prices in shops rose by 5.1% in August, British Retail Consortium finds, as the war in Ukraine pushes up prices up for farmers

The rapidly rising price of food including milk, margarine and crisps pushed August shop price inflation to the highest levels since 2008 as the war in Ukraine raised costs for farmers.

Prices in shops rose by 5.1%, a big increase from 4.4% in July, as food producers passed on increases in the cost of fertiliser, wheat and vegetable oils, large amounts of which are produced in Ukraine and Russia, according to data from the British Retail Consortium (BRC) and market research firm NielsenIQ.

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Unions threaten ‘waves of industrial action’ over UK cost of living crisis

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Move could see synchronised strikes in autumn as new prime minister takes office

Britain is facing a wave of coordinated industrial action by striking unions this autumn in protest at the escalating cost of living crisis, the Observer can reveal.

A series of motions tabled by the country’s biggest unions ahead of the TUC congress next month demand that they work closely together to maximise their impact and “win” the fight for inflation-related pay rises.

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Dow plunges 1,000 points after Fed chief Powell warns of inflation ‘pain’

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US stock markets nosedive as Jerome Powell says at top bank summit the ‘overarching focus is to bring inflation back down’

US stock markets nosedived on Friday after Federal Reserve chair, Jerome Powell, warned of “pain” ahead as the central bank struggles to bring down inflation from a 40-year high.

Powell’s highly anticipated speech was more hawkish than had been expected, with the Fed chair pledging to do all he could to end rising prices. The Dow Jones Industrial Average lost just over 1,000 points, 3%, the S&P fell 3.3% and the Nasdaq dropped almost 4%.

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‘I am not blaming anyone’: Estonians shrug off 23% inflation

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Those in Europe’s inflation hotspot remain calm about rising prices, but a lack of government intervention could fuel further increases – and discontent

Like his cappuccinos, Taniel Vaaderpass, 33, isn’t bitter. His usually profitable company, OA Coffee, one of Estonia’s biggest coffee bean roasting companies, may have posted a loss for the first time last year and is set to do so again this year, but Vaaderpass remains strikingly sanguine as he sits on the terrace of the cafe he also owns on a cobbled street in the old town of Tallinn.

The central causes of Vaaderpass’s misfortune is a 240% increase in the price of unroasted green coffee and a 20% surge in the cost of the gas he uses to roast his imported beans. He also felt the need to give his staff a 10% pay rise in January despite the lack of company profits.

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UK consumer confidence weaker than during major recessions

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Monthly look finds deepening pessimism about personal finances and prospects for the economy

Consumer confidence in the UK is weaker than during the four major recessions of the past half century as rapidly rising inflation saps morale.

Although the UK is technically yet to enter recession, the latest barometer of sentiment from the data company GfK found the public gloomier than at any time since the survey began in January 1974.

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UK’s 10% inflation casts doubt on Truss and Sunak’s tax cut promises

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Soaring cost of living is forcing up government spending on benefits, pensions and debt leaving no spare cash to lower taxes

Britain’s first double-digit inflation in more than four decades has cast doubts on the plausibility of the tax cuts being promised by Liz Truss and Rishi Sunak during their leadership battle, one of the UK’s leading thinktanks has said.

Following news that the government’s preferred measure of the cost of living rose by 10.1% in the year to July, the Institute for Fiscal Studies said higher inflation would mean extra spending on welfare benefits, state pensions and on debt interest.

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Cooking oil price surges hurt Australian takeaway outlets including fish and chips

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Covid-induced inflation, drought in Canada and global instability are putting the squeeze on key ingredients of a national staple

Takeaway businesses are feeling the pinch as prices surge for cooking oil and potatoes – two key ingredients of an Australian staple: fish and chips.

Justin Quinton, the owner of Saltmine Fish and Chips in the New South Wales Hunter region, told Guardian Australia his Salamander Bay eatery previously used a blend of cottonseed, canola and sunflower oil.

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UK economy shrank by 0.1% in three months to June

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ONS says two bank holidays to mark Queen’s jubilee contributed to fall in output in June

Britain’s economy contracted by 0.1% in the three months to June, according to official figures that revealed the weakening outlook for the UK, which is expected to enter a recession later this year.

The dip in output in the second quarter followed 0.8% growth in the first quarter and was driven by the health sector – as Covid testing and the vaccine programme was wound down – and by retail, as household spending fell. Economists had forecast a bigger fall in output of 0.2% in the second quarter.

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Trump says he invoked fifth amendment in New York attorney general’s investigation: ‘I declined to answer’– live

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In lengthy statement, Trump says he refused to answer questions during deposition as part of inquiry into real estate dealings

The justice department has announced charges against a Tehran-based member of Iran’s Revolutionary Guards for attempting to hire someone in the United States to kill John Bolton, a national security adviser under Donald Trump.

According the department, 45-year-old Shahram Poursafi last year promised an unnamed person in the United States $300,000 to kill Bolton, probably as retaliation for Washington’s assassination of Qassem Suleimani in January 2020. The goal was apparently to have Bolton killed by the 3 January anniversary of Suleimani’s death in Baghdad, but the person Poursafi allegedly hired for the job was actually a confidential informant.

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US inflation falls to 8.5% in July but still close to multi-decade high

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Gas prices drop sharply after a hitting a national average of $5 a gallon in mid-June

The pace of price rises dipped in the US in July as gas prices eased, bringing down the annual rate of inflation to 8.5%, still close to a multi-decade high but lower than the four-decade peak it hit in June.

July’s figure, while still high, represents a significant fall from the annual rate of 9.1% recorded in June and will raise hopes that inflation has finally peaked in the US. It follows other indicators that have suggested price rises are moderating.

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A third of UK parents cutting back on children’s pocket money

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Cost of living crisis has meant the average amount given to children has fallen to lowest level since 2001

Children’s piggy banks are paying a high price for the cost of living crisis after almost a third of parents cut back on pocket money during the last year.

The average amount that is going into the pockets of under-16s each week has dropped by 23% to £4.99 this year from £6.48 in 2021, according to research from the lender Halifax – the lowest amount since 2001.

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Two-thirds of UK’s top restaurants in the red after Brexit, Covid and inflation

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Meanwhile £700m of support funds in business rates relief remains unpaid by local councils

Debt repayments, staff shortages and rising energy bills have pushed almost two-thirds of the UK’s top 100 restaurants into the red, according to research that reveals the impact of the pandemic, Brexit and the cost of living crisis on the hospitality sector.

With a recession looming and further increases in energy bills weighing on businesses, a separate report found that £700m of business rates relief remains unpaid with only half of English councils paying out the support funds.

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Gordon Brown: ‘Set emergency budget or risk a winter of dire poverty’

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Former PM has warned of a financial timebomb awaiting families as Labour plans a major intervention to address crisis

Boris Johnson and the Tory leadership candidates should agree an immediate emergency budget tackling the spiralling cost of living, Gordon Brown has said, or risk “condemning millions of vulnerable and blameless children and pensioners to a winter of dire poverty”.

The intervention by the former prime minister comes as new figures seen by the Observer show that more than 4 million households are on course to spend a quarter of their net income on energy.

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Truss ‘irresponsible’ for threatening to review Bank of England remit

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Labour’s Rachel Reeves says Conservatives are ‘playing blame game’ for UK’s economic problems

Liz Truss has been accused of being “deeply irresponsible” for threatening to tinker with the Bank of England’s mandate on the brink of a recession.

The shadow chancellor, Rachel Reeves, attacked the Tory leadership frontrunner after Truss and her allies repeatedly questioned the performance of the Bank’s governor, Andrew Bailey, and said she would review the institution’s remit.

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Bank of England hikes interest rates and says inflation will hit 13%

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Base rate raised by 0.5 percentage points to 1.75%, as Bank says inflation will hit 13% in October

Vladimir Putin’s invasion of Ukraine has left Britain on course for a recession lasting more than a year and inflation above 13%, the Bank of England has warned as it raised interest rates for a sixth successive time.

Threadneedle Street said it had no choice but to increase borrowing costs by 0.5 percentage points to 1.75%, blaming Russia for cost of living pressures not seen in more than four decades and a 5% drop in living standards straddling this year and next – the biggest since records began in the 1960s.

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Visits to shopping centres and high streets dip below pre-pandemic levels

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South of England experiencing faster recovery than north, Scotland and Northern Ireland

Visits to high streets and shopping centres dipped to below pre-pandemic levels last month, with the north of England – plus Scotland and Northern Ireland – trailing behind the south in terms of the overall recovery from Covid-fuelled gloom.

Footfall decreased by 14% in July compared with 2019, reversing gains made in April, as retailers struggled to entice shoppers amid a heatwave in the third week of the month and surging inflation.

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