The lies of the level of inflation

Rising energy prices in Britain have seen some poorer citizens turn down potatoes offered at food banks as they cannot afford to boil them, the head of Iceland Foods Ltd supermarket chain has claimed.

In an interview with the BBC Radio 4 Today program on Wednesday, Richard Walker said the “cost of living crisis is the single most important domestic issue we are facing as a country.” He cited reports from some food banks that users are “declining products such as potatoes and other root veg because they can’t afford to boil them.”

Walker said food price inflation was “pushing 10%” – an estimate remarkably higher than the 5.1% annual figure provided by the Office for National Statistics. The supermarket chain boss pointed out that price hikes have been particularly evident when it comes to items such as milk, whose production involves several stages, with the cost of every part of the process rising.

He concluded that high food prices were here to stay and that it could be argued that, systematically, “Food has been too cheap for too long.” He said the pressure on chains was “relentless and coming at us from all angles” as they tried to keep prices down.

Explaining the ballooning costs, he blamed rising oil prices, worker shortages, and the falling supply of Russian fertilizers and Ukrainian sunflower oil over the past month.

Walker suggested that the UK government could implement measures to take the heat off retailers. He urged that the energy price cap on households could be extended to businesses, which he said would translate into some £100m in savings on consumers. He also called on authorities to postpone the introduction of the planned increase in national insurance, as well as some new environmental taxes.

Following Russia’s military offensive against Ukraine, which began on February 24, gas and oil prices – a large proportion of which is being supplied to Europe from Russia – have shot up dramatically, resulting in higher energy bills both for individuals and businesses across Europe.

Go back 100 odd yrs and average UK household is said to have been spending 50% of income on food versus 10% today.

In that past era housing costs were a lot cheaper though - if only because the majority were in shared houses - some with a whole family of parents/several kids living in just one room.

Petrol prices have hit another record high as oil and gas costs soar amid fears of a global economic shock from Russia's invasion of Ukraine.

Oil jumped to $139 a barrel at one point, the highest level for almost 14 years, while wholesale gas prices for next-day delivery more than doubled.

It came as the US hinted at a ban on buying Russian energy, as it looked to other countries to increase supplies.

However, European leaders rejected that idea on Monday.

German Chancellor Olaf Scholz said Europe had "deliberately exempted" Russian energy from sanctions because its supply cannot be secured "any other way" at the moment.

And Netherlands prime minister Mark Rutte said: "The painful reality is we are still very much dependent on Russian gas and Russian oil and if you now force European companies to quit doing business with Russia that would have enormous ramifications around Europe including Ukraine but also around the world.

"We have to reduce our dependency. That will take time," he added.

UK petrol prices have hit an average of 155p a litre, the AA motoring group said.

The market turmoil is fuelling concerns that the price of many everyday items from food to petrol and heating, already rising at their fastest rate for 30 years, could be pushed higher.

Analysts have already warned that UK energy bills could reach as high as £3,000 a year due to the surge in oil and gas prices.

Russia is the world's second top producer of crude oil after Saudi Arabia, and supplies about a third of Europe's needs. The price of Brent crude rose by more than a fifth last week amid fears of a reduction in Russian supplies.

After peaking at $139.13 a barrel early on Monday, the price of Brent crude - an international benchmark - fell back to around $125.

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The latest rise in UK petrol prices has pushed the cost to more than £7 a gallon, the AA said. Filling up a car with a 55-litre tank now costs nearly £17 more than a year ago, rising from £68.60 to £85.59.

The boss of fuel delivery firm Portland Fuel, James Spencer, told the BBC he thought fuel prices could reach £1.70-£1.75 a litre. "Even if we can get extra [oil] supplies on to the market, nothing will happen quickly."

He said that, to a certain extent, individual car drivers have options to cut their use by driving less, but added that businesses that have no alternatives were really starting to feel the squeeze.

The crisis continues to affect share markets. The main stock exchanges in France and Germany sank more than 4% in early trading before paring their losses, closing 1.3% and 2% lower respectively.

In London, the FTSE 100 dropped more than 2%, but then recovered to close 0.4% lower. Last week, the FTSE had its worse week since the start of the pandemic in March 2020.

In the US, markets ended lower with the Dow Jones and S&P 500 down 2.4% and 3% respectively. The Dow is now in a "correction", having fallen 10% since its last record closing level on 4 January.

The price of gold, a haven in troubled times for investors looking for security, hit $2,000 an ounce for the first time in almost 18 months.

These are massive movements in the price of commodities - the raw materials that eventually feed, warm and transport us.

The extra movements this morning arose out of talk of an embargo on Russian oil. That is very significant, because Russia is the second biggest world exporter. Anyone passing a petrol station would have seen the impact. If there was an actual embargo, the price of an average tank could head close to £100, and indeed is already there at the most expensive service stations in the UK.

But we don't need to be physically reliant on actual Russian supplies for it to feed through into the prices our suppliers pay and then pass on to us. The price for gas in international markets was already at incredible highs last week. It further increased by a third to frankly frightening levels, 10- to 15-times normal, above £6 per therm.

If in the first half of this year these prices average £3.20, then typical dual fuel bills in October could rise to £3,000 a year or £250 a month.
On Sunday, the US Secretary of State Antony Blinken said the Biden administration and its allies were discussing a ban on Russian oil supplies.

The comments came as pressure grows on the White House and other Western nations to take tougher action against Moscow over its invasion of Ukraine.

A Russian oil embargo would be a major escalation in the response to the invasion of Ukraine and would potentially have a major impact on the global economy.

However, some European countries are reluctant given their dependence on Russian energy supplies.

"While the US might just push through a ban on Russian oil imports, Europe can ill-afford to do the same. More worryingly, [Russian leader Vladimir] Putin, with his back to the wall, could turn off gas supplies to Europe, cutting off the continent's energy lifeline," said Vandana Hari at oil markets analysis firm Vanda Insights.

Mr Johnson said Europe could not simply shut down the use of oil and gas overnight, but that countries should move together quickly to look beyond Russia for its oil and gas supplies.

On Sunday, energy giant Shell defended its decision to purchase Russian crude oil despite the invasion of Ukraine.

The company said it was forced to buy oil from Russia in order to maintain timely supplies of fuel to Europe.

"To be clear, without an uninterrupted supply of crude oil to refineries, the energy industry cannot assure continued provision of essential products to people across Europe over the weeks ahead," a spokesperson added.

A possible ban on buying Russian oil has intensified pressure to find alternative supplies.

The US is this week expected to press Saudi Arabia to increase crude production, and there is fresh impetus for a deal over Iran's nuclear ambitions that would lift sanctions on its oil exports.

However, progress on a deal has been hampered after Russia sought a US guarantee that the sanctions it faces over the Ukraine conflict will not affect its trade with Tehran.

Get your nice friend Mr. Putin to withdraw completely from Ukraine. That would reduce a huge amount of inflation and other misery in Ukraine, in Russia, in the UK, and in most of the rest of the world.
Or at least stop repeating his many lies about the invasion.

Domino effect ahoy!

A revelation is coming, that will reveal repulsion and anger, at a system that's benefited the few, at the expense of the many. Some will be too comfortable and close their eyes. Others will defend it, protecting ones system, that does me very nicely; thank you! Lot's of mammon shifting going on lately. Some twitchy bums and sweaty armpits. But hey! Lets be distracted and focus on the latest Bogey Man, Putin.

Jeff, classic troll goading. I wonder if Blackjack will take your bait? I'd change my float, the one your using is far too garish.

Plenty of mammon shifting. Plenty of mse members with twitchy bums. Jeff thinks he has nailed it.

Don't you love a farce?
My fault, I fear
I thought that you'd want what I want
Sorry my dear
But where are the clowns?
Send in the clowns
Don't bother
They're here

https://www.youtube.com/watch?v=fOUrnUktTjU

Bosse