The squeeze on household budgets is showing no signs of easing

Feb 14, 2018 | Inflation

“The squeeze on household budgets is showing no signs of easing after official figures revealed that inflation remained close to its highest level in almost six years in January, increasing the chances of another rise in interest rates within months” (Times)

So please explain to me, a simple financial adviser, former economics scholar and person with a family and mortgage, how increasing interest rates and squeezing my household budget still further is going to reduce inflation. It’s a Maggie policy from the spend-spend-spend ‘80s;  now it’s the financial equivalent of forcing an already-depressed person to watch Eastenders on rotation.

 

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“UK inflation falls more than expected to 7.9% in June”

“UK inflation falls more than expected to 7.9% in June”

There are as many versions of inflation in the big world of the economy as there are in our humble homes. There’s the ‘we really can’t afford that (insert expensive object or project which you don’t really want to be bought or to happen), have you seen the price of (your choice, but petrol and milk are always good) version.