Stelios 🇬🇷

How the heck can BoE turn hawkish? Does switching off the economy stop the prices of imports from going up? If my family goes bankrupt the supermarket doesn't lower its prices. Fiscal plus monetary squeeze is on just when we don't need it.

The supply shock move in Energy prices, fertilizer prices, and food prices IS a Rate hike which slows the economy and is disinflationary to goods and services that are not energy and food. A dual mandate central bank doesn't hike into a supply shock until wage inflation is anticipated to support non (food and energy) inflation

The real killer is that as the government charge VAT on fuel, the higher prices go the more the government profits from it. Yet they scream at the retail sellers instead, who have already seen costs rocket due to government tax hikes on employing staff and had their margins compressed