Disclaimer: Some of my words and the video are being censored and so I have put hashtags in place to the letters, hence why I have had problems publishing this post.
Introduction to our guide on ‘Financial Difficulty’ and what we have included at Glance (Part 1).
(W### Makes Money and The Truth About The Money System).
- Cost of Living increase and Financial Difficulty.
- The impact of the war on the UK.
- Petrol/ Diesel Prices.
- Food Prices.
- Cost of Living Key Statistics.
The Poor are Getting Poorer in the UK.
- Cost of Living Increase And Financial Difficulty.
Households are already feeling the pinch, in the UK & in the US by the rising cost of living, while wages struggle to meet the astronomical increases in overheads.
Inflation increased by 7.5% in January in the US – the highest level is seen since February 1982, due partly to food and energy prices.
Supplies of energy, food, or other commodities like metals are to rise because of the Russia-Ukraine c###f###t and the UK leaving the EU with a shortage of workers and lorry drivers, prices could be pushed up even further.
This is a very worrying time for the Global economy.
Low-income households and working families are having to come under increasing financial pressure as prices soar.
The worst hit is going to be the families with three or more children of any family group, including single parents, and couples with a single earner will suffer significantly with declining disposable incomes.
Property prices, private sector rent hikes, and crippling childcare costs, all amount to the UK having an all-time record high poverty rating, according to the analysis of official figures released last month.
Martin Young, a financial analyst at the banking group Investec, has expressed concerns and has warned that household fuel bills in the UK could reach an all-time high of £3,000 per annum.
Motoring groups have also said the average petrol price had already hit a record high of nearly 149.5p, with diesel at 152.83p.
Another concern is aviation fuel, if airlines then decide to pass on the increased cost to the customers, then inevitably the price of a plane ticket could rise.
A senior investment and markets analyst at Hargreaves Lansdown Susannah Streeter, said :
” Oil and gas prices are ‘marching upwards’ and there could be ‘even higher prices to come. Wars are by their very nature inflationary, and this would particularly be the case with Ukraine when considering Europe’s dependency on Russia for oil, gas, and key ingredients like wheat, so sanctions would hit hard and shortages of supplies could see prices shoot up further. The extra pounds on bills are piling up for hard-hit families, with the increase in fuel, energy, and grocery bills set to hit lower-income households harder as a higher proportion of their outgoings will be spent on travel costs. With budgets being squeezed further the likely knock-on effect will be a hit to consumer confidence after any lockdown savings are worn away.”
2. The impact of the w#r on the UK.
How will Russia/Ukraine w## affect fuel prices in the UK?
Russia is one of the UK’s oil suppliers and increases are on the way as a result of oil hitting $106 a barrel and the pound weakening, making wholesale fuel more expensive to buy for retailers in the UK.
The Nord 2 natural gas pipeline from Russia has been halted which has caused prices to rise by 13% in Europe by German Chancellor Olaf Scholz which will cause prices for food and energy to soar affecting millions of households, whilst the UK’s equivalent rose by 8% and US crude oil went up to 1.4% and escalated to 3% leaving energy markets volatile.
Russia supplies much of the oil and gas which may well lead to distribution and shipping prices increase, whilst Ukraine supplies vast amounts of wheat, corn, sunflower products, and grains.
Financial analysts predict that w## could impact the production of grains and even double global wheat prices, consequently severely impacting shoppers in Egypt, Turkey, and many other countries, in particular North Africa, which relies on the import of wheat and corn.
People commuting to work or simply relying on their cars for school runs, hospital appointments, and grocery shopping will have to brace themselves for what’s to come, with many households on lower incomes having to make difficult choices as a result of needing to put fuel in their cars.
Russia is the second-largest exporter of oil after Saudi Arabia causing prices to inflate exponentially in the midst of trying to control the world’s oil supply which will impact petrol prices in the UK. Petrol prices have been rising for some time, but have now hit an all-time high of £149.30, with industry experts predicting that prices could soon reach £1.50 per litre.
4. Food Prices
The consequence of the Russian war on Ukraine could also hit shopping baskets around the world. Russia is the biggest exporter of fertilizers which could impact farmers.
Disruptions to the supply and availability of produce could severely impact the global market. Ukraine exported more than 40% of its wheat to the Middle East & Africa last year alone. However in contrast the UK produces 90% of the wheat consumed.
Once dubbed “the breadbasket of Europe”, Russia and Ukraine export about a quarter of wheat and half of their sunflower products, like seeds and oil globally.
With sanctions imposed and bank accounts frozen, Russian stocks have crashed by as much as 45% after the news of the invasion of Ukraine, with banks and oil companies among the worst-affected.
In Europe, the UK’s FTSE 100 index fell more than 3% and Germany’s Dax index was nearly 5% lower.
First, the rise of inflation was blamed because the UK had left the EU and as a result because of a shortage of workers mainly lorry drivers from eastern European countries in the import-export industry. Now the rising costs are being blamed because Russia and Ukraine are at w##, which is very real and very concerning, and with inflation already jumping to 5.5%, it is the highest level in almost 30 years.
The current rate of inflation is over double the ideal level of 2% that the Bank of England aims to maintain. With increases predicted to be around 7%.
The Bank of England in February said to increase interest rates to 0.5% has put further pressure on stretched household budgets, as mortgage and loan repayments increase, the Bank of England continued to say that further interest rate hikes are likely, linked to the current global uncertainty and the need to try to control inflation here in the UK.
With inflation on the rise, wages in the UK are predicted to be lower by 2026 than they were even during the credit crunch in 2008, this worrying trend looks set to remain for some time. Whilst inflation is normally linked to wage increases and a growing economy it can also be affected by wars.
7. COST OF LIVING
KIS Finance research has revealed (57%) are already struggling financially, as a direct result of the rising cost of living.
KIS Finance’s research found:
- That a staggering 27% are already struggling financially as a direct result of the rising cost of living.
- With 30% of households anticipating financial problems in the very near future as the impact of rising prices bites.
- Young people between 18 – 24-year-olds reported 35.5% already have financial problems.
- 36% of People in the age group of over 55’s said they were worried that the financial pinch will hit them shortly as prices continue to rise.
- 30% in the South East of England are already struggling financially.
- An amazing 22% of young people between 18 – 34-year-olds have had to take on an additional job since the Pandemic.
- Anyone who is thinking about retirement in the next few years may now be reconsidering whether they can afford to do so.
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