Inflation is Worldwide Now,not Just Ukraine.
Causes;
OIL Prices,
Wage Increases,
The Cost of Borrowing Interst Rate,
An Increase in Money being Spent,
Devaluation of the Currency-Import Prices.
Real Inflation Near 10% in Great Britain
Feb. 12, 2008 (EIRNS)—A survey by the Daily Telegraph revealed that British families are paying 1,300 pounds more a year for basic household bills, including food, fuel, and energy costs. This comes to over 100 pounds a month. Last year monthly expenses amounted to 1,200 pounds and now has increased 1,307 pounds.
Moreover, official figures from the Office of National Statistics revealed that prices paid by firms for wholesale goods such as food and oil increased by 5.7% in January alone. Food factories are paying 8.5% more for materials they have to purchase, the highest increase since records were kept. Analysts warn these costs will increase even further. They report the price of a dozen eggs increased from 1.75 to 2.45 pounds in the last year. A package of butter increased 62%, and a kilo of basmati rice by 39%. These equate to an increase of 324 to 527 pounds a year per family just for food.
The Guardian reports that the Office of National Statistics has found that the annual inflation rate in ingredients for home produced food is 36%. Raw materials cost on the average of 18.9 % more than last year. Crude oil is up 70%.
The paper reports that the official inflation rate, now at 2.2%, is meaningless since it includes several luxury items such as electronics, plasma TV and the like where prices have dropped because fewer people are buying them.
We have been here before. The 1970s witnessed the onset of what we came to call stagflation - high inflation combined with weak economic activity and high unemployment. Then, as now, the proximate cause of difficulty was large increases in energy and commodity prices emanating from abroad - about which we could do nothing. Then, our initial response was to try to protect output and employment. The result was surging inflation which, at the peak, reached 27pc.
