How is inflation effecting you in 2022?

[GoldDiggerDave]

We all talk about inflation it would be good to see the real world daily effect it has on us.   It will effect some more than others, some can absorb and mitigate the effects so if you have any tips or advice for us all that would be great.  I filled my car up last night with diesel and holy smoke £92.67 to brim the car, I've had the car a good number of years and £58-67 ish was the norm to fill up.  This is now getting crazy, luckily I don't drive much now as I'm no longer in the 9-5 rat race.   Today if I was doing my commute what I did a few years back I would easily be shelling out £340-£380 per month just to get to work and back, so before tax I would have to earn the best part of £500 per month just to afford to drive to work.....CRAZY!         

I have friends that who are paying more than this now to get to work and like most of us only have a modest income and they have 2 kids with another on the way, I just don't know how it's even possible for some families to make ends meet.  With the almost certain gas and electricity prices rising this year many people are going to be squeezed the likes that's not been seen for a generation. 

I don't what this to be doom and gloom, it would be interesting to see where people are feeling the real world effects of inflation is it the supermarket, childcare, fuel prices, other effects etc and would be great for a share of information and practical advice  that may benefit TSF members.    

 

 

 

 

 

Edited February 2, 2022 by GoldDiggerDave

[Stacktastic]

Always a way round these things. 

I think if I actually went anywhere, especially a long commute I would start making fuel again. 
i used to get the oil for free & make fuel for less than 50p during the last recession. 

http://www.vegetableoildiesel.co.uk/mybbforum/ 

If meat goes through the roof, I shall just become a vegetarian or build a fish farm in the garden (thats my education). 
Electricity should hit us harder as we are home all day, so I have to think about that one? 

Edited February 2, 2022 by Stacktastic

[BackyardBullion]

@GoldDiggerDave Yep, fuel is the biggest one that hurts the bank account for us 🙂 

Food prices generally too, you find so often you get way less and for much more. 

However....there is one food related deal that seems to have stood the test of time for at least the last 15 years from my memory...

Tesco Meal Deal = £3 and has always been £3 since I can remember! 

I also feel like the sandwiches have gotten bigger and better as well as the size of the packets of crisps and drinks on offer too!

Still way cheaper and healthier to make your own lunch - but it is an interesting fact that in 15 years £3 meal deal has not changed!

[AppleZippoandMetronome]

So far I'm feeling it most in my car's fuel tank and with my business's costs.

I moved to a much more rural location nearly 2 years ago so expected to be paying more for transportation simply because I'm further away from everything but rising prices at the pumps have made those costs more noticeable. I am somewhat able to offset this though. Thankfully my business is based in the building on my property right beside my house so the commute is about 15 steps. I get all my outgoing orders collected these days so I don't have to drive around to post offices or UPS drop off locations. These services got a lot better at a good time for me. I feel its worth noting though as bad as I find this cost increase I'm still paying dramatically less in fuel now than I was spending on an annual train ticket to commute into London on packed trains 10 years ago. I'd take the fuel increase over that any day.

As for the businesses costs it seems pretty much everything across the board has risen in price from packagaing to equipment to the goods I buy and sell themselves. A lot of it is manageable because the items I sell have also risen in value so my prices were able to creep up without a bad reaction but there are some one off costs that are hammering the bottom line - more or less anything I need to import. I am doing my best to avoid those scenarios but the reality is there are some things (a lot of things) which aren't available in the UK and have to be imported.

My home energy prices have been fine. I have a pellet boiler and a couple of wood burners. Wood comes free via my mate who is a tree surgeon (very handy) and the pellets are cheaper this year than last. I expect electricity prices to be horrible come April but we're not there yet.

Food costs have been fine. I'm sure some things have gone up but I've offset a lot by growing my own fruit and veg as much as possible and selling the excess locally to pay for the growing costs.

Most things can be offset but its always a question of time/effort. I can heat my home for very little and grow my own food but it means spending a few hours a day extra working in the veg patch after spending the day working or giving up a weekend to chop and stack logs my mate drops off.

[GoldDiggerDave]

@Stacktastic You sound like you have a good plan, I cut back on everything in 2008 and did as much as I could to save money and become debt free.  The biggest single gain was a log burner.  £1,300 to buy and install and it instantly saved me £800 per year,  in 2022 I'm at home more and fuel prices have gone crazy I'm calculating the log burner this year will save me £1,400+.   £1,400+ saving per year on an £1,300 investment is a massive return.  I get wood for free with marginal costs to collect.

Once the weather gets better I will do 50% of my commute on a bike, it's just not practical in winter getting wet plus I'm getting soft in my old age. 

[Zhorro]

So, in the UK, the energy regulator has just announced that the energy price cap will be going up by 54% (£693) from April!

In about half an hour the Bank of England is likely to put up interest rates in order to tackle inflation.

Any ideas how an increase in interest rates is going to tackle energy price inflation??

[GoldDiggerDave]

@Zhorro Totally agree, and interest rates are projected to be over 4% by the end of 2022.  British gas and Shell energy have carved up the UK energy market into a cartel.   54% increase is a total joke but they know the masses have no option but to accept it.  Just as long a booze and takeaways are cheap people seam to be blind to the robby that is taking place.  Maybe when the Just eat delivery turns up and it's £65, and a case of beer is £40 the masses might start to take an interest in the economy.   

It will be a stress test for the country as many will have never faced economic hardship before. 

 

 

[sixgun]

i see the BoE put interest rates up today. 

[Zhorro]

Does a 54% increase for energy prices qualify as hyperinflation?

[GoldDiggerDave]

@Zhorro 54% is simply an insane rise, and this is only the start of things to come.  54% is hyperinflation in my book.   I was having a conversation about this with my wife tonight.  We have seen a 5.4% rise in council tax,  10% rise in  milk, worked out around £700 more per year in petrol and diesel, with the electric and diesel we are likely to cough up £1,600 a year more and that's before factoring in other costs.

A family with children, where one or more parents commutes are likely to see rises of conservatively over £4000 per year.  Debt interest rates a compounding 39.9% and I bet before the year is out all the banks get their ducks in a row and slam this to well over 45 if not 50%.

 

 

 

Edited February 3, 2022 by GoldDiggerDave

[Minimalist]

Hyperinflation is here.

The energy bills are going up.

NI contributions are going up.

Mortgage payments are going up.

Costs of general basic needs is going up.

But hey, that £200 loan Rishi Sunak has offered us will make everything better. Thats not to mention he has given the Banks a £1billion tax cut each year.

Dont worry though a couple of Stellas, Love Island, JustEat and Social Media will make it go away.

*smdh*

Get me out this schizophrenic Union right now ffs. China and Russia need to announce a new bretton woods asap. 

Edited February 3, 2022 by Minimalist

[HerefordBullyun]

I can only touch myself furiously 100 times a day now. Bog roll getting less and I have have to fit in the odd dump or 4. The girlfriend caught me wiping my plonker on the curtains forteen times last week becuase lack of lav roll and cost, shrinkflation. The curtains like cardboard now. More like foldable blinds!

Edited February 3, 2022 by HerefordBullyun

[Griffo]

As has already been mentioned fuel is the first thing I noticed recently, seems to be up 25% and food, we did a big stock up shop and I was gobsmacked how much it was, combine that with energy this year and many families are going to be squeezed, the. 25% interest rates is bladders compared to where rates should be to back to normal, the last few decades have crippled pensioners who relied on savings and interest. 

[GoldDiggerDave]

How much does your family spend on food per month including  eating out?  Friends with 2 older children at home told me they spend £900-£1000 per month on  normal supermarket shop and I know they must spend another £250 a month eating out  I thought this was nuts  as it’s well over 15k per year. And that’s after tax so they have to earn circa 19k gross to eat…….this is before the mental inflation we are about to see.  

Their mortgage, utility bills,  car payments etc has to be £1,900 per month after tax £22,800 per year so a min of 29k per year gross plus the 19k gross for food and entertainment, they have to earn 48k per year just to live and this is not factoring in all other costs.  
 

I’m no way judging them I just see them as a normal 2 car, 2 children, 2 job working family doing okay.  However is this real sort of costs families face?  No way in hell can they absorb even slightest inflationary period, a sustained high rate of inflation will easily crush many families. 
 

 

 

Edited February 4, 2022 by GoldDiggerDave

[GoldDiggerDave]

I loved these adverts as a kid, in the turbulent 80's interest rates on mortgages were around 15%,  peaked in 1979 at 17%.  10% on a savings account was a very attractive deal.   It's projected that UK interest rates will hit 4% by the end of the year.

 

 

 

[Stu]

1 hour ago, GoldDiggerDave said:

How much does your family spend on food per month including  eating out?  Friends with 2 older children at home told me they spend £900-£1000 per month on  normal supermarket shop and I know they must spend another £250 a month eating out  I thought this was nuts  as it’s well over 15k per year. And that’s after tax so they have to earn circa 19k gross to eat…….this is before the mental inflation we are about to see.  

Their mortgage, utility bills,  car payments etc has to be £1,900 per month after tax £22,800 per year so a min of 29k per year gross plus the 19k gross for food and entertainment, they have to earn 48k per year just to live and this is not factoring in all other costs.  
 

I’m no way judging them I just see them as a normal 2 car, 2 children, 2 job working family doing okay.  However is this real sort of costs families face?  No way in hell can they absorb even slightest inflationary period, a sustained high rate of inflation will easily crush many families. 
 

 

 

Similar family set up with 2 older kids, 2 cars. Live out in the sticks. Our food bill keeps rising, try to keep a lid on it but even with being careful, looking at £500 a month. Shop everywhere for best deals, use vouchers and now do a menu plan so only buy exactly what need. This is useful as saves faffing on deciding what to have and works very well. I would say it’s a ball ache thinking about it but not as bad in reality. I share the cooking also so helps me choose dishes I am good at.

Alsoto add, shopping bill includes food and household products but not alcohol which is separate..

 

You can be frugal but it’s a life choice. My other half is ok with it but it’s a fine balancing act between that and being cheap. 

Fuel is mega, nearly £100 to fill the family saloon.

Electric went from £90 to £130 as company went bust and wil no doubt be closer to £200 by April. 
 

NI going up in April.

I think I got a 1.5% pay award this year coming so still going backwards big time. Just hope gold does its job folks!

Edited February 4, 2022 by Stu

[Zhorro]

Is this massive increase (54% average) in gas and electricity prices happening in other countries, or is this just a UK thing?

https://www.zerohedge.com/energy/britons-face-steep-drop-quality-life-uk-govt-scrambles-avert-energy-crisis-subsidy-plan

[Stacktastic]

9 hours ago, HerefordBullyun said:

The girlfriend caught me wiping my plonker on the curtains forteen times last week

Thats where cxmsocks come in. You need to have a rotation system that allows them to dry if she does the washing though.  

9 hours ago, Griffo said:

seems to be up 25% and food. 

Lucky we have a Lidl & Costco near by - its amazing how much you can save. 
Plus you can buy gold.

Im gonna need to curb eating out I think, but the prices are still in line with pre pandemic seasonalflu levels so this will take time to really kick in. 
Really need to look at places I will be hit and hedge for them. investing in certain stocks when cheap is also an option as they will benefit directly (like Gas atm).

[sixgun]

5 hours ago, GoldDiggerDave said:

I loved these adverts as a kid, in the turbulent 80's interest rates on mortgages were around 15%,  peaked in 1979 at 17%.  10% on a savings account was a very attractive deal.   It's projected that UK interest rates will hit 4% by the end of the year.

i also notice he handed over a big wad of cash and the woman at the building society doesn't bat an eye. i suspect you would get the third degree nowadays. i remember when i withdrew £6500 in cash from the bank for the deposit on my marital home, i don't remember any issues and i put it in a supermarket bag and took it to the solicitors - no questions were asked. This is how it was in England.

[GoldDiggerDave]

practical tip no1 

Topcashback everything, if you buy anything on line use this.  The Mrs has had 3.5k cash back, works with loads of websites, ebay 1.5% cash back.  I even got 3.3% cash back on the 3 Graces coins I bought form the mint.   Just got £150 on my mobile phone, worked out cheaper to get the phone on contract and get the £150 back than buy the phone outright like I did in the past.  I always get £120-£150 back when I change my TV/broad band.  

 

 

 

 

 

 

 

[Stacktastic]

5 hours ago, GoldDiggerDave said:

practical tip no1 

Topcashback everything, if you buy anything on line use this.  The Mrs has had 3.5k cash back, works with loads of websites, ebay 1.5% cash back.  I even got 3.3% cash back on the 3 Graces coins I bought form the mint.   Just got £150 on my mobile phone, worked out cheaper to get the phone on contract and get the £150 back than buy the phone outright like I did in the past.  I always get £120-£150 back when I change my TV/broad band. 

I have saved a fortune on Quidco over the years - I remember looking at my account some years back and was shocked I had over £300 to cash in.  

[Griffo]

5 hours ago, GoldDiggerDave said:

practical tip no1 

Topcashback everything, if you buy anything on line use this.  The Mrs has had 3.5k cash back, works with loads of websites, ebay 1.5% cash back.  I even got 3.3% cash back on the 3 Graces coins I bought form the mint.   Just got £150 on my mobile phone, worked out cheaper to get the phone on contract and get the £150 back than buy the phone outright like I did in the past.  I always get £120-£150 back when I change my TV/broad band.  

 

 

 

 

 

 

 

Not heard of that, need to enlighten myself more with online things like that, usually takes the son in law to put me onto things I need to know Lol

[GoldDiggerDave]

FFS.......I have just been watching the news at 10, and they are talking about 5-6 MILLION people being in fuel poverty.  What the hell is going on in this county, we are suppose to be one of the wealthiest countries in the world and we have millions of people reliant on food banks but can't cook the food they are given because it's becoming too expensive to cook a meal.  

 

[Stacktastic]

40 minutes ago, GoldDiggerDave said:

FFS.......I have just been watching the news at 10

Thats the first mistake - fear mongering, but it shows the intention of narrative progression. 
But the news has its positives as you can see whats coming months/years in advance as its controlled.   

But yes as I have learnt from my european wife the average uk person could not even cook a proper soup let alone make most of a chicken, sheep or calf. 
All in the long term design to take it out of mainstream 'all you need comes from the supermarket'
'dont hold your own water supply keep poultry/livestock or even think about growing your own food for gods sake!!'
That would mean that you think for yourself & have creativity, expression & most importantly nurture & compassion. 
Which we dont want as we dont have that it makes us sad. 😣

This is changing slowly even i have an allotment now & a garden with an automated irrigation system & considering building a fish farm. 
More people are waking up to the BS. we have been spoon fed for too long time to fight back and take the consequences IMO.  
Thats my thoughts anyway - they are not necessarily final.  

Everything is narrative nothing actually matters long term. offloading alert!!

I guess im just so fed up of all the people I know (including myself) who have caught the CV
and have nothing other than a bad cold but act as its a life threatening illness. WTF. 

This is rudimental when compared to a surf during the black death. 
Bet they would dream of sitting about doing feck all for a year and a half & get paid for it
whilst not one person they know (under 82 & fully healthy) dies as a result.  

I guess I have my mind made up - I don't care about what anyone thinks & I am ready to move into the light (rather of topic though). 😇

Edited February 4, 2022 by Stacktastic

[Minimalist]

3 hours ago, GoldDiggerDave said:

FFS.......I have just been watching the news at 10, and they are talking about 5-6 MILLION people being in fuel poverty.  What the hell is going on in this county, we are suppose to be one of the wealthiest countries in the world and we have millions of people reliant on food banks but can't cook the food they are given because it's becoming too expensive to cook a meal.  

 

Bank of England have told workers not to ask for a wage rise.