At some point things just become not affordable for business as well as customers.
Business passes all costs onto the consumer. An interest rate rise means a price rise. Were these bankers missing the day they taught capitalism in business school?
>£100 a steak, £20 a pint.
Ok, that guy is deluded and has no right running a business, fuck right off.
Companies need to realise they’re going to have to sacrifice that extra profit. I’m worried that the collusion going on between the large corporations will prevent that from being a reality.
Millions of people have just been issued end of year pay increases. The market and inflation rates need to adjust for this over the next few months. By july(ish) rates will level off and fall.
Record profits in combination with record price rises means profiteering.
Bizarre statement. You can’t control inflation by asking nicely. And Bailey knows that, so what’s this really about? Edit: think they’re trying to refocus the attention back onto prices rather than financial instability, because they know rates will need to keep rising but markets are very nervous right now.
Remember when the same guy told us that regular workers asking for raises were the problem? It’s taken 11 consecutive interest rate rises to call out big business for price hiking. Could it be greed-driven inflation? Who would’ve thought 🤯
It’s been a snowballing situation since 2019, when energy prices were creeping up. Covid sped things up. Since then its been a seesaw ride between product and service costs, and inflation and interest rates.
If the invisible hand of the market is supposed to sort it all out how come he needs to make these warnings?
Does this mean the Bank of England is actually finally realising that this inflation isn’t being caused by wages but actually by the greed of corporations?
Sadly many won’t get this film reference.
“They f@&k you at the drive through”
It’s almost as if workers wages rising at a much lower rate than inflation isn’t the main problem.
Oh so its the small businesses fault now?
shut the fuck up gaslighting bastards the government has been allowing the energy companies to extort the public and subsidizing their rape of the public purse with more public taxes.
I have to say this is probably one of the worst sentences I’ve ever seen written down.
> Raising prices could drive up the cost of living even further and would hurt the least well-off most
Raising prices WILL drive up the cost of living, that’s what they do. And ‘least well-off most’ is just clumsy.
It’s going to be a vicious circle. Interest up.. companies use this to justify price increases, inflation rises.. interest up again.
We just need realistic gas and electricity prices to solve everything
This is the end result of fractional reserve banking and the low interest rates we’ve had for 15 years.
Banks pumping out cheap loans that allowed big companies to just buy up or eliminate competition so they can bump prices up and not take a hit.
Furlough was just a catalyst for everything.
It’s purely mathematics. Inflation increasess have gone up more than 10.4% but yet product prices have sky rocketed. Clearly a case of “I need to raise price by £0.10p to break even, £0.15p to make a profit. Fuck it, people won’t care if this product goes from £1.15… so ..let’s just bump it up to £1.50 and blame it on inflation”. Doesn’t take a dummy to up prices more to a level where consumers are just about happy to buy the product, albeit with a little reluctantance.
It’s not in there interests to stop raising prices.
Interest goes up, they blame external pressures.
Company puts up prices.
Workers ask for a raise to combat cost increase.
Company refuses or provides a lower amount.
Company raises prices significantly as workers want more money and therfore items cost more.
Company raises prices again as people have more money because they are being paid more.
Interest goes up. See above.
If people are very lucky during this cycle they may also be sacked for some reason.
All of this of course goes against the worker/consumer but I do believe the companies can’t be bothering with things like that.
He can warn all he likes, but its going to make as much difference as when he warned workers not to ask for pay rises.
When numerous staples are in short supply, shoppers are in competition for them, and after printed money was handed out during furlough in a way which was obscenely generous to very many (by no means all) people, a lot of households are pretty flush with cash and able to outbid each other for these resources, so prices rise.
Inflation figures are due to fall in the next few months as rises this time last year drop out of the one year window, and some recent lower energy and commodity prices start to filter through, but make no mistake inflation is getting dangerously entrenched in this country and its going to be very difficult to shake off.
We wasted so much energy worrying about a wage price spiral that we never considered the profit price spiral. I wonder why that is 🙃
How about hike rates now and save us an extra month of faffing about
Pussies
This is what happens when markets have no competition. Maybe the Tories should review their hands-off and let the market decide ideology, and how that plays out in the real world.
This may sound dumb but.
Take an energy company, for example, they made 3.5 Billion in a quarter. Across the board energy prices are crazy. Why would a company NOT register 1 Billion in profit, use the other 2.5 billion to reduce cost of a unit to a more sane rate, entice new customers in at the lower rate and use that additional revenue to top up the profits?
Small businesses operating on razor thin profit margins will have little choice but to put prices up if they see an increase in expenditure as a result of this interest rate increase.
Larger businesses will put prices up even if they don’t have to because, well, money.
All this does is shift the blame game to businesses for increasing inflation without addressing why we’re seeing inflation in the first place.
We are seeing an increase in the cost of “raw” goods and energy. This is driving inflation. This is caused by Brexit and pure greed by energy firms.
Fix the fucking root cause of the problem, you useless cunts!
You are never going to convince people nor business to stay poor, nor are you going to convince them to be less-rich. It’s crazy that a bank governor is seriously making this their core message like it could ever work.
BoE: if you raise prices more, we’ll hike interest rates higher!
Firms: oh noes! If only our massively increased profits could compensate for that…
Regular people and smaller businesses: well, we’re fucked…
Meanwhile those of us with mortgages that are up for renewal this year: *chuckles* I’m in danger
Every time this guy opens his mouth the confidence drains out of the room. He really should not comment, only notify. When he speaks, it sounds like he does not know what he’s talking about.
First and foremost, stop all these fucking inflation + 3.9% mid contract price rises.
The stupid thing is that raising interest rates will have absolutely NO effect on current inflation. The current hyperinflation is caused by worldwide demand outstripping supply, war in Ukraine, Brexit, and loads of other factors.
The cost of borrowing isn’t one of them!
But they’re bankers so let’s kick the people, and small businesses when they’re down!
Very important to remember that ‘Tesco’ does not put prices up. A person just like you and me who works for Tesco chooses to put the prices up to maximise profits. They do a weekly shop at the same shops as us but they’re fucking everyone over to line the shareholders pockets in exchange for a pat on the head and a few grand at the end of the year
But how else will they get maximum profit. Profit just won’t do
The giv fucked up and we expect you to pay the price….the old “whipping boy” routine. Gov never change
Ah now the bank of england has caught on, it’s FIRMS and COMPANIES exploiting us that is causing inflation, charging us way above what their costs have increased by.
Do they care though? considering they are high now and still rising prices
I work for a small company that is losing money after lockdowns and Covid and such.
We held off a lot of increases for the customer but this month we’ve really had to increase quite a lot on some areas. Unfortunately we can’t continue to lose out, as the economy continues to struggle and suppliers vastly put prices up (in some cases multiple times this year) – it’s just going to happen sadly.
At the same time we are trying to increase wages – and struggling with the fact people are asking for inflation driven increase that we just can’t match. Probably we may get just under half of that percentage.
Things will be set to rise further over the next few years I think as more controls/laws come in around climate control & carbon footprints, the bottle deposit scheme will come to England after Scotland, and to fund things that the government aren’t providing funds for, or at least not enough the cost will be passed onto the consumer. It’s and endless cycle 🙁
This has been the culture all along and will continue to be. Why would they stop? Apparently this comment is just politics of envy though. Apparently I don’t like people making profits because I make these comments.
We all seemed to be doing ok making our wages and allowing big corp to gouge us. But now they are going to allow big corp to gouge us. But we will no longer have jobs and forced into lower wages. How does this help inflation? I’m missing something
Where the fuck has Bailey been for the last 18 months?! Oh yeah that’s right – wholly unaffected by the price gouging. You know it must be getting bad when even the people pulling the strings are noticing an insufferable increase in their weekly food shop costs. It would be funny if it wasn’t so tragic for the millions of people already suffering horribly over all of this.
43 comments
At some point things just become not affordable for business as well as customers.
Business passes all costs onto the consumer. An interest rate rise means a price rise. Were these bankers missing the day they taught capitalism in business school?
>£100 a steak, £20 a pint.
Ok, that guy is deluded and has no right running a business, fuck right off.
Companies need to realise they’re going to have to sacrifice that extra profit. I’m worried that the collusion going on between the large corporations will prevent that from being a reality.
Millions of people have just been issued end of year pay increases. The market and inflation rates need to adjust for this over the next few months. By july(ish) rates will level off and fall.
Record profits in combination with record price rises means profiteering.
Bizarre statement. You can’t control inflation by asking nicely. And Bailey knows that, so what’s this really about? Edit: think they’re trying to refocus the attention back onto prices rather than financial instability, because they know rates will need to keep rising but markets are very nervous right now.
Remember when the same guy told us that regular workers asking for raises were the problem? It’s taken 11 consecutive interest rate rises to call out big business for price hiking. Could it be greed-driven inflation? Who would’ve thought 🤯
It’s been a snowballing situation since 2019, when energy prices were creeping up. Covid sped things up. Since then its been a seesaw ride between product and service costs, and inflation and interest rates.
If the invisible hand of the market is supposed to sort it all out how come he needs to make these warnings?
Does this mean the Bank of England is actually finally realising that this inflation isn’t being caused by wages but actually by the greed of corporations?
Sadly many won’t get this film reference.
“They f@&k you at the drive through”
It’s almost as if workers wages rising at a much lower rate than inflation isn’t the main problem.
Oh so its the small businesses fault now?
shut the fuck up gaslighting bastards the government has been allowing the energy companies to extort the public and subsidizing their rape of the public purse with more public taxes.
I have to say this is probably one of the worst sentences I’ve ever seen written down.
> Raising prices could drive up the cost of living even further and would hurt the least well-off most
Raising prices WILL drive up the cost of living, that’s what they do. And ‘least well-off most’ is just clumsy.
It’s going to be a vicious circle. Interest up.. companies use this to justify price increases, inflation rises.. interest up again.
We just need realistic gas and electricity prices to solve everything
This is the end result of fractional reserve banking and the low interest rates we’ve had for 15 years.
Banks pumping out cheap loans that allowed big companies to just buy up or eliminate competition so they can bump prices up and not take a hit.
Furlough was just a catalyst for everything.
It’s purely mathematics. Inflation increasess have gone up more than 10.4% but yet product prices have sky rocketed. Clearly a case of “I need to raise price by £0.10p to break even, £0.15p to make a profit. Fuck it, people won’t care if this product goes from £1.15… so ..let’s just bump it up to £1.50 and blame it on inflation”. Doesn’t take a dummy to up prices more to a level where consumers are just about happy to buy the product, albeit with a little reluctantance.
It’s not in there interests to stop raising prices.
Interest goes up, they blame external pressures.
Company puts up prices.
Workers ask for a raise to combat cost increase.
Company refuses or provides a lower amount.
Company raises prices significantly as workers want more money and therfore items cost more.
Company raises prices again as people have more money because they are being paid more.
Interest goes up. See above.
If people are very lucky during this cycle they may also be sacked for some reason.
All of this of course goes against the worker/consumer but I do believe the companies can’t be bothering with things like that.
He can warn all he likes, but its going to make as much difference as when he warned workers not to ask for pay rises.
When numerous staples are in short supply, shoppers are in competition for them, and after printed money was handed out during furlough in a way which was obscenely generous to very many (by no means all) people, a lot of households are pretty flush with cash and able to outbid each other for these resources, so prices rise.
Inflation figures are due to fall in the next few months as rises this time last year drop out of the one year window, and some recent lower energy and commodity prices start to filter through, but make no mistake inflation is getting dangerously entrenched in this country and its going to be very difficult to shake off.
We wasted so much energy worrying about a wage price spiral that we never considered the profit price spiral. I wonder why that is 🙃
How about hike rates now and save us an extra month of faffing about
Pussies
This is what happens when markets have no competition. Maybe the Tories should review their hands-off and let the market decide ideology, and how that plays out in the real world.
This may sound dumb but.
Take an energy company, for example, they made 3.5 Billion in a quarter. Across the board energy prices are crazy. Why would a company NOT register 1 Billion in profit, use the other 2.5 billion to reduce cost of a unit to a more sane rate, entice new customers in at the lower rate and use that additional revenue to top up the profits?
[Everybody](https://i.pinimg.com/originals/3b/c1/56/3bc1566a5c03743d5e90d23794e27ffb.jpg)
Small businesses operating on razor thin profit margins will have little choice but to put prices up if they see an increase in expenditure as a result of this interest rate increase.
Larger businesses will put prices up even if they don’t have to because, well, money.
All this does is shift the blame game to businesses for increasing inflation without addressing why we’re seeing inflation in the first place.
We are seeing an increase in the cost of “raw” goods and energy. This is driving inflation. This is caused by Brexit and pure greed by energy firms.
Fix the fucking root cause of the problem, you useless cunts!
You are never going to convince people nor business to stay poor, nor are you going to convince them to be less-rich. It’s crazy that a bank governor is seriously making this their core message like it could ever work.
BoE: if you raise prices more, we’ll hike interest rates higher!
Firms: oh noes! If only our massively increased profits could compensate for that…
Regular people and smaller businesses: well, we’re fucked…
Meanwhile those of us with mortgages that are up for renewal this year: *chuckles* I’m in danger
Every time this guy opens his mouth the confidence drains out of the room. He really should not comment, only notify. When he speaks, it sounds like he does not know what he’s talking about.
First and foremost, stop all these fucking inflation + 3.9% mid contract price rises.
The stupid thing is that raising interest rates will have absolutely NO effect on current inflation. The current hyperinflation is caused by worldwide demand outstripping supply, war in Ukraine, Brexit, and loads of other factors.
The cost of borrowing isn’t one of them!
But they’re bankers so let’s kick the people, and small businesses when they’re down!
Very important to remember that ‘Tesco’ does not put prices up. A person just like you and me who works for Tesco chooses to put the prices up to maximise profits. They do a weekly shop at the same shops as us but they’re fucking everyone over to line the shareholders pockets in exchange for a pat on the head and a few grand at the end of the year
But how else will they get maximum profit. Profit just won’t do
The giv fucked up and we expect you to pay the price….the old “whipping boy” routine. Gov never change
Ah now the bank of england has caught on, it’s FIRMS and COMPANIES exploiting us that is causing inflation, charging us way above what their costs have increased by.
Do they care though? considering they are high now and still rising prices
I work for a small company that is losing money after lockdowns and Covid and such.
We held off a lot of increases for the customer but this month we’ve really had to increase quite a lot on some areas. Unfortunately we can’t continue to lose out, as the economy continues to struggle and suppliers vastly put prices up (in some cases multiple times this year) – it’s just going to happen sadly.
At the same time we are trying to increase wages – and struggling with the fact people are asking for inflation driven increase that we just can’t match. Probably we may get just under half of that percentage.
Things will be set to rise further over the next few years I think as more controls/laws come in around climate control & carbon footprints, the bottle deposit scheme will come to England after Scotland, and to fund things that the government aren’t providing funds for, or at least not enough the cost will be passed onto the consumer. It’s and endless cycle 🙁
Something something don’t raise wages something something wage price spiral something something inflation is happening regardless something something tax the rich.
This has been the culture all along and will continue to be. Why would they stop? Apparently this comment is just politics of envy though. Apparently I don’t like people making profits because I make these comments.
We all seemed to be doing ok making our wages and allowing big corp to gouge us. But now they are going to allow big corp to gouge us. But we will no longer have jobs and forced into lower wages. How does this help inflation? I’m missing something
Where the fuck has Bailey been for the last 18 months?! Oh yeah that’s right – wholly unaffected by the price gouging. You know it must be getting bad when even the people pulling the strings are noticing an insufferable increase in their weekly food shop costs. It would be funny if it wasn’t so tragic for the millions of people already suffering horribly over all of this.