A global recession is on the horizon - please read OP for mod warning

I imagine we need another touch base in a few months. What is the new date?

...remember now folks, you re all spending like drunken sailors, which in turn is causing inflation, now please stop spending your hard earned cash on energy, please!

I was the same, almost done a double take... I filled up the tank few weeks ago when some petrol station was celebrating by lowering their price per liter and since then price jumped so much. Luckily I don't drive too much.

Notice more and more the amount of cleaners advertising their services. Rewind couple of years ago, you can hardly find a cleaner and they would charge quite hefty hourly fee.

Seems to people are tightening their purse and cleaners are being let go.

How can the current high costs of living continue in this county a lot of mortgages/rents have gone up in repayments/payments. Energy remains high and may go higher. Petrol is high and will go higher. Taxation is high and with the onset of the pensions affordability crisis (this will start kicking in within the next 10 years with our aging population) and the gradual eroding of the corporation taxes taken will mean more taxes on income. Our politicians continue to try and buy votes from social welfare recipients and Public sector employees by giving rate raises which have to be paid for via taxes and once given its very hard to take away. Those are just a few examples but almost every facet of living has gone through the roof I cannot see one area where prices have come down or where there is value for money anymore and wages has not and will not come up to meet it over the next decade will we see a complete slowdown and depression as peoples wage are decimated by paying out anywhere from 60 to 90% of their wage for taxes and accommodation and the the persons remaining wage seeing less purchasing power for simple things like the weekly shop. Has there been anywhere globally where this happened in history and what was the outcome?

What type would that be?

I am particularly curious to know how you could categorise me.

Any reason for the 31st October deadline or is it an information you also don’t want to divulge?

The problem is people are being forced to borrow to meet today's hikes.

All hiking does is increase bankruptcy and increase demand for government supports.

No hiking prevents the economy overheating leading to further inflation followed by a severe recession. If you think it’s bad now you have no idea how tough it would be without rate hikes or being part of the Euro.

Government supports only distort inflation for example the cut in the fuel levy helped lower inflation in the short term but prolonged the inflationary period because it generates inflation when reversed.

That’s not saying it’s a bad thing because it helped people and without it could have sent the country into recession because people would need to cut discretionary spending to pay for it and pubs/restaurants/coffee shops would have gone bankrupt quickly. It has allowed businesses time to readjust and get ready for a cut in discretionary spending.

The biggest obstacle to inflation falling is that the economy is in full employment which means people can move for better pay or negotiate pay rises.

Inflation will be around Until companies decide to not fill positions and there is a slowdown in employment. This is already starting to happen with companies that have previously been through this cycle.

It’s the likes of restaurants/pubs that have just invested in refurnishing based on their recent increase in turnover and that will need to keep charging high prices to pay for the refurbishment that will go to the wall as once discretionary spending falls they will be hit the hardest and have no capacity to lower prices to attract customers.

That's Trick or Treat night. I can't wait.

The thing is that a 5% rise is probably more like 3% in your pocket once the taxman has his cut!

So people looking for pay rises to match current inflation rates still leaves them worse off.

Could be that or maybe it is a handy cash in hand job for a lot of the migrants who were brought here over the last two years. I know in my own apartment block the management company has hired a lot of Ukrainian women, have spoken to a lot of them myself.

Obviously just a guessing stab, you could well be right too but anyone who had cleaners into there home in the first place are probably the ones least affected by this tightening.

Your first line highlights the problem if hikes only force the recession.

There'll even more demand for supports with bankruptcies and all that for nought as energy prices won't be tamed as demand from other blocs continues.

What you've described is the act of appearing to be doing something, a placebo effectively considering ground level supports are needed. What's the point in inducing a regional recession when it won't quench global demand?