
Distant Star
7.8K posts

Distant Star
@DistantStar3
Brighter than the light.






Tumble dryers are expensive on energy and mostly unnecessary - a trad clothes-line much better for clothes and climate. On this, I’m with Ed M.







🔥 Free speech is being crushed in Britain - but you can get protection! The Free Speech Union is offering a special rate for CPAC GB visitors of $30. Heavyweights Toby Young, Allison Pearson and Lucy Connolly will be speaking out! Get your ticket → cpac.org/int/greatbrita…



The Bank of England's Monetary Policy Report makes for unremittingly grim reading: * Inflation could hit 6.2% at the start of 2027 * Food prices could rise by 6-7% by end of the year * Warnings of possible need for 'forceful ' rises in interest rates. One scenario has as many as **six** rises by the end of the year, taking rates to 5.25% * Living standards already falling * Economic growth forecast to be anaemic * Low-income households most exposed to energy price shock * Food and hospitality businesses most exposed and could be forced to lay people off The Bank of England has warned that inflation could rise to more than 6% at the start of 2027 if the energy price shock caused by the Iran war causes prices to 'rise sharply and remain elevated for a prolonged period' In this scenario interest rates would need to remain 'materially higher' than previously expected to bring inflation down The Bank's other scenarios have inflation at 3.5% before falling back. The Bank says there is 'significant uncertainty about how events will play out' Which is undeniably correct - the figures the Bank is using as the basis for its forecasts are already outdated. They don't factor in the events of this week and the renewed threat of escalation Food prices are forecast to rise by 4.6% by September as higher energy costs feed through, along with increases in the cost of fertiliser. The Bank thinks that food price inflation could hit 6-7% by the end of the year Economic growth will remain 'subdued', the Bank says. Which in this case is anaemic - we're talking 0.1% in 2026 Q2 Who will it affect? The Bank says that lower income households will be more exposed to increases in the cost of living, which is a statement of the obvious - a higher proportion of their income goes on essentials. Lower income households spend twice as much on food as a propertion of their expenditure compared to higher income households 'Early evidence suggests that, although firms do expect to absorb some of the rise in energy costs within their margins, most firms also expect to raise prices somewhat in response to the shock' The Bank is particularly concerned about the risk of rising levels of unemployment in the hospitality sector - particularly hotels and restaurants - which will be most exposed if people's incomes fall. The industry is said to be 'very concerned' The hospitality industry is *more exposed* than it was in the wake of the Ukraine war, with 80% of food retailers with cash reserves worth less than a month's turnover. 'This may limit these firms' ability to retain workers in the face of continued demand weakness' bankofengland.co.uk/monetary-polic…
















