Displaying items by tag: inflation

Lisbon’s rent is €2,000+. The minimum wage is €760. There are more houses than people, but prices don't go down. Comedian Diogo Faro posted a social media video about high rent. His inbox was flooded with messages like divorced couples who can't afford to move out, the elderly choosing between paying rent or buying medication; shortening their lives to have a roof. Lisbon's mayor said that housing is the biggest crisis in our lifetime. 1/3 of Lisbon's historical centre is unoccupied due to ‘touristification’ - holiday rentals diverting homes from residential use to tourism. Foreign investors with Golden Visas can reside in Portugal, renovate a house, and then allow it to remain empty. Houses are being sold over and over again, creating a distortion in the housing market.

‘We have a low-wage, high-welfare economy, which means people depend continuously on tax credits and all sorts of other welfare help in order to get by. That is not a sustainable situation for millions of households up and down the country’, says Christian economist Professor Adrian Pabst. As the cost of living crisis continues, the prospect of corporations engaging in increasing the cost of items at the shopping till to keep their profits high is facing investigation by the Competition and Markets Authority (CMA) amid ‘ongoing concerns about high prices’. The CMA is looking at whether increases are linked to ‘any failure in competition’. Recently, Tesco’s chairman said it was ‘entirely possible’ that food producers are hiking prices more than necessary. Professor Pabst asks, ‘Do workers deserve a pay rise to match inflation? Christians should be on the side of the dignity of labour, not siding with private profit.’

Independent Christian economist Bridget Rosewell, previously economic advisor to the Greater London Authority, said, ‘I'm expecting the economy to be in an uncomfortable place and we shouldn't lose sight of the long term, in the short term.’ The Bank of England has raised interest rates twelve times in a row and believes inflation will fall slower than predicted as food prices stay stubbornly high. Interest rates take a while to feed through into prices but more stable prices will eventually come through. People with mortgages should expect their interest payments to rise. Pray for people to not overextend themselves or take out loans if they are not sure how they will repay them. Ask God to remove envy and the love of mammon across the UK so that people do not think that they have to have everything that others have. 

Details have been outlined of temporary price control measures aimed at helping families to cope with mounting global inflation. The measures will affect 38 key staples such as eggs, bread, and sanitary towels. Prime minister Philip Davis announced the controls in a national address as part of broader measures to help the island nation, which imports many goods, to tackle the effects of rising price pressures globally. The controls, which limit price increases to 15% for wholesalers and 25% for retailers, will last six months, after which they will be subject to review. The prime minister remains confident that these additional measures will provide relief to Bahamian families. He also said the government would cut profit margins on price-controlled drugs and unveiled a $6 million investment in defence vessels, as they do not have the resources to deal with waves of undocumented migrants.

The Bank of England has raised interest rates to 1.75%, the biggest rise in 25 years, as it predicts an even higher peak in inflation of 13%. It fears inflationary pressures are becoming ‘more persistent and broadening’. Many companies have been successfully raising prices which will push up consumer costs in the shops. The latest rise in gas prices has led to another significant deterioration in the financial outlook as the UK is now projected to enter recession. The bank has forecast that the UK economy will start shrinking in the fourth quarter of this year, and then keep contracting through next year. That would be the longest recession since after the 2008 financial crisis. The bank also points to the UK’s ‘tight’ labour market - a signal that it is worried about a wage-price spiral, as workers seek pay rises to help with the worst cost of living crisis in decades.

The Bank of England’s chief economist pledged to ‘deliver inflation back to its 2% target’ despite the challenges of rising food and energy costs and a fall in the pound’s value that has made both more expensive. The central bank’s single purpose at the moment is to bring down the rate of price growth - a clear hint that more interest rate rises are on the way. His comments follow an equally stark warning from a deputy governor of the Bank, who said its monetary policy committee (MPC) would ‘do whatever is necessary’ to prevent the rocketing cost of living from becoming a lasting inflation problem. The Bank has raised interest rates five times since December in response to soaring prices.

The southern African nation's 15 million people are faced with shortages, inflation and other economic woes, conjuring memories of economic chaos under Robert Mugabe's near four-decade rule of hyper-inflation. Zimbabwe will start selling gold coins from July 25th in a bid to tackle runaway inflation which has hamstrung the local currency. Gold "Mosi-oa-tunya" coins - named after Victoria Falls - will contain 31 grams of gold and can be converted into cash and traded both locally and internationally. Gold coins are used by investors globally to hedge against inflation and wars.

The World Bank has extended another year of financial aid to Lebanon despite political bickering. Inflation reached 206% in April, Lebanon’s currency dropped yet again last week, and Heart for Lebanon reports shortages of everything from electricity to fuel to bread. Everything costs more, and 78% of the population needs some kind of food assistance to survive. They are becoming more desperate every day. Divisions are deepening among the newly-elected parliament members. Fighting between parties that are for and against Hezbollah is taking priority over much-needed reform. People are looking for answers. They are turning to God in record numbers. Heart for Lebanon and local churches provide food and encouragement to families, showing them the love of Christ before telling them about the love of Christ. Ask God to strengthen and encourage Lebanese believers. They are staying put to care for people in need, instead of leaving the country to benefit themselves.

Britain’s poorest households are expected to see a huge increase in their living costs when energy bills rise this autumn, leading economists have warned. The Institute for Fiscal Studies (IFS) said the fresh surge in gas and electricity bills expected in October could lead to average annual inflation rates of as high as 14% for the poorest tenth of households. The increase in the energy price cap to close to £2,800 is likely to hit poorer families disproportionately because a larger share of their total spending goes on energy. The IFS said the poorest tenth of households typically spend almost three times as much of their budgets on gas and electricity as the richest 10% do.' The Government has responded by announcing specific financial support for low-income households and pensioners, and wider support for all households to pay their energy bills, funded by a windfall tax on energy companies.

Labour is calling for an emergency budget to bring forward more measures to tackle the cost-of-living crisis. Inflation is at a thirty-year high. Sir Keir Starmer demanded further measures, for instance a windfall tax on energy firms. Downing Street said the Queen's Speech, in which future policies are outlined, is coming up, and these issues are ‘utterly central to what the Government is trying to do’. Chancellor Rishi Sunak unveiled plans to address the cost of living in March's Spring Statement. They included fuel duty cuts, raising the threshold for paying National Insurance, and cutting the basic income tax rate before the next general election. Meanwhile grocery prices were 5.9% higher in April than a year ago due to rising raw material costs, whilst shoppers are turning to discount retailers Aldi and Lidl as budget pressures grow. The average household food bill will now be a potential extra £271 per year: see