I took some comfort yesterday when it was reported that the Bank of England announced it was keeping the interest rate at 0.5%, however this is only delaying the inevitable.
Not sure about you folks outside the UK, but 2011 here seems to have set the tone for the coming months, maybe even years. Let’s do a quick review of the impact:
1. VAT rise – ok we knew about this one but I’ll still complain, croissants (pack of 4) have gone up from 88p to a £1. IMPACT – Jam toast for the kids in the mornings. I can still afford the jam.
2. Petrol rise – I can recall driving out on a Monday morning past my local filling station, by Friday the price had jumped some 6p per litre. IMPACT – get everyone up early, walk everywhere, or invest in a wheel-barrow.
3. Gas & Electricity rise – I can remember a radio add by British Gas, “British Gas are now dropping their prices”. What season were we in? Summer. You are dropping your prices because come November/December, you are going to announce price rises. Exactly what happened, coldest winter in UK and increase in prices. IMPACT – 4 layers of clothing for everyone at home.
4. Retirement Age set to rise to 66 – Great, that means I get to work that one extra year in some supermarket or DIY store, taking stick from some young “know it all”. IMPACT – What with the pensions scenario I was intending on working until 100 anyway.
5. Something has actually gone down in price – Houses. IMPACT – now I definitely know I paid way too much for my house!
Appreciate we are all in the same boat here, but open to suggestions for new locations.