Snapshot of Eurozone inflation falls to 5.5% in sharp contrast to UK. Economists put reason for divergence down to Brexit and Britain’s energy price guarantee.
I know we’ll not regain the special privileges we had and will need to eventually move toward the Euro but good lord we should be rejoining the EU posthaste.
You do realise that Germany and Italy are in a literal recession right now, with negative growth rather than slowing growth? I don’t think that’s Brexit.
Brexit is the gift that keeps on giving.
Did Austria, the Netherlands and Sweden brexit as well?
Edit. Why is it ok to compare UK to average of the Eurozone but not to the countries with high inflation? Double standards methinks
Why are you excluding energy and food?
It’s called core inflation. It doesn’t include volatiles.
The intended use of core inflation is when the base assumption holds true, that assumption being demand for food and energy will not reduce as price increases.
That assumption has not held, we’ve seen a reduction in demand for both as budgets have been squeezed to breaking point, even with the price caps.
That doesn’t change the definition of core inflation…
I never said it did, but it does change whether it’s an appropriate measure to use.
Why not suggest one that is then
Literally the first paragraph says “economists put it down to brexit”. But I’m sure you had enough of experts.
The experts said that inflation was temporary. Look how its going now.
and Britain’s energy price guarantee
And you’re ignoring the second half of the first paragraph?
Why?
Not ignoring it. Of course there are other factors. But brexit is definitely a factor. Therefore: Brexit, the gift that keeps on giving.
Economists said most of the reason for the divergence between the UK and the EU was down to the UK government’s energy price guarantee (EPG), which has capped the cost of gas and electricity bills to the equivalent of £2,500 a year for a typical household until July. In the eurozone there have not been similar caps fixing the price over a lengthy time period, meaning their inflation rates better reflect the recent global decline in wholesale gas and electricity prices.
I work in agtech, brexit is a gift, it’s caused disruption that’s a great catalyst for investment in regenerative and vertical farming
Problems are opportunities
Wage growth is also high as a result of the labour squeeze that brexit is partially affecting
That seems suitably vague.
be specific, what can you do now that you couldn’t have done in the EU and why has that caused more investment that wouldn’t have happened anyway?
The CAP is an environmental disaster. The UK has now created its own agriculture policy that does not subsidise production. This was not possible whilst in the EU.
The government can only pretend external factors are entirely to blame for so long. As more and more evidence like this continues to pile up, it will become politically untenable. Eventually it’ll just be the maddest of the mad still in the Brexit camp and the less devoted Brexiteers will want to disassociate.
Did you even read the article?
Economists said most of the reason for the divergence between the UK and the EU was down to the UK government’s energy price guarantee (EPG), which has capped the cost of gas and electricity bills to the equivalent of £2,500 a year for a typical household until July. In the eurozone there have not been similar caps fixing the price over a lengthy time period, meaning their inflation rates better reflect the recent global decline in wholesale gas and electricity prices.
