Inflation

The professor provides an explanation of the origins of money as well as the cause and cure for inflation.

Inflation is blamed on many things. But it has only one cause: It is a monetary phenomenon. Inflation occurs when the quantity of money increases faster than the quantity of goods. Why does the money supply increase? Very often, it does so to enable the government to pay its bills without raising taxes. There's only one real cure for inflation. It is a cure that's easy to describe but difficult to apply: The government must reduce spending and print less money. The alternatives are both recession and double-digit inflation. Recorded at University of San Diego & San Diego Chamber of Commerce ©1978

Shop price inflation in the UK hit its highest rate since 2008 in June, propelled by a sharp increase in perishable food prices. This has been brought about by soaring supply-chain costs and a decline in consumer spending, The Guardian reported on Wednesday, citing data from the British Retail Consortium BRC-NielsenIQ shop price index.

Shop prices rose by 3.1% year-on-year this month, up from 2.8% in May. Food inflation alone surged to 5.6% in June, from 4.3% the month before, while perishable food prices were up 6.2% against last year’s figures, their highest growth rate since May 2009, pushed up by the “spiraling costs of fertilizer and animal feed.”

The BRC data follows the latest figures from the UK’s Office for National Statistics, which showed that overall UK inflation soared to 9.1% in May, a 40-year high amid record fuel prices and the rising cost of food.

The situation is likely to force UK consumers change their spending habits, Mike Watkins, the head of retailer and business insight at NielsenIQ, says.

“As inflation accelerates due to rising energy, travel and now food costs, shoppers are now more likely to cut down on out-of-home consumption, shop at a fixed budget, switch to cheaper private label and seek out retailers where prices are the lowest,” Watkins stated.

www.rt.com/business/558056-uk-shop-price-inflation

Inflation is more than a change in your purchasing power. Inflation can give rise to dictators like Hitler. It can also force a country into irrelevance, like Venezuela. As our world battles record inflation, Palki Sharma brings you the 4 'P's you need to watch out for.

Store prices in the UK have jumped 5.1% year-on-year in August from 4.4% in July, posting their highest growth rate since 2005, Sky News reported on Wednesday, citing data from the British Retail Consortium (BRC) and research company NielsenIQ.

According to the report, food prices surged at their fastest rate since 2008 – to 9.3% from last year. Fresh food prices were 10.5% higher than last August, up from the 8% rise recorded in July, with products such as milk and margarine seeing the biggest price increases.

According to the UK Office for National Statistics (ONS), the rise in food prices is one of the key drivers of inflation, which surged to 10.1% in July. Some analysts warn it could exceed 18% or even 22% next year, if energy prices continue growing.

According to BRC chief executive Helen Dickinson, the outlook is “bleak for both consumers and retailers.” She noted that businesses are likely to support customers through “discounts to vulnerable groups, expanding value ranges, fixing prices of essentials, and raising staff pay,” but said that “there is only so much they can shoulder” amid soaring costs.

Mike Watkins, head of retailer and business insight for NielsenIQ, suggested that “this level of food inflation to be with us for at least another six months.”

“With further falls in disposable incomes coming this autumn as energy costs rocket again, retail spending will come under pressure in the all-important final quarter of the year.”

www.rt.com/business/561871-uk-food-prices-soaring

Rep. Lauren Beobert (R-CO) refuses to cede the floor as she attacks the Inflation Reduction Act.

Consumer price inflation in France accelerated to new highs in October, data from the National Institute of Statistics and Economic Research (Insee) showed on Friday.

According to preliminary estimates, year-on-year price growth in the country hit 6.2%, exceeding July's high of 6.1%.

The rate had previously slowed in August and September after hitting the highest level since 1985 in July. Nevertheless, France’s inflation remains one of the lowest in Europe.

The agency noted that the more rapid inflation was prompted largely by the rising cost of fuel, food and raw materials, as well as increasing production costs.

Energy prices showed the sharpest growth, of almost 20%, despite government interventions. Food costs grew by 12%.

www.rt.com/business/565506-france-consumer-prices-soaring