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.
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.
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
Literally the first paragraph says “economists put it down to brexit”. But I’m sure you had enough of experts.
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.
A factor, but clearly not the primary one.
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
Oh oh I know this one. Freedom is slavery and ignorance is strength right?
No, solutions = £
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.
So I suppose what you are saying is, now that the cost of food production has increased that’s made investments in these things more viable? Kind of sounds like some significant downsides for the other part of that equation. Not quite a Brexit benefit for the rest of us, just those in a specific VC funded R+D company.
I also think… those investments could have still happened in the EU tbh, could and maybe should have been government funded research anyway, considering there is at least one large vertical farm company in Germany.
Not really buying that as a benefit myself, but at least it is arguable!
No, the disruption to supply chains from covid and brexit have driven investment decisions to grow more in the UK and to use tech to replace low skill labour that wasn’t possible with FOM providing serfs to grub about in the dirt. Cheap labour is a barrier to tech. Modern slavery is a big issue in farming
The CAP was designed to deliver cheap food during conflict, it’s failed at the first real test.
The CAP takes the largest slice of the EU budget and the ‘modern’ farming it encourages have destroyed biodiversity and soil
Policy to fix this has failed miserably to the tune of our entire net contribution to the budget of 66b
https://www.arc2020.eu/cap-billions-spent-on-biodiversity-with-little-impact-auditors/
I’m happy to hear of a positive side effect of brexit. I’m not going to lie, I think it’s the first.
The experts said that inflation was temporary. Look how its going now.
… Sweden isn’t in the Eurozone.
Neither is the UK… The problem with being in the eurozone is that member states have no central bank. Spain, for example, is unable to reduce interest rates despite their CPI being under the ECB target of 2% and unemployment over 13%
Instead, the ECB will probably be hiking rates more to quell inflation in other member states.
This is a weird argument. The US, undoubtedly the world’s strongest economy, has a single central bank covering the Deep South and the coasts, which are also running at two different speeds. The job of Spain is to run a decent economy with no deficit, something they continually fail to do. Sure you can blame it on lack of central bank, but they’ve got other tools available for them as well.
So because the US has terribly performing states, that somehow justifies not being able to set your own monetary policy? That’s a weird argument.
Maybe the reason Spain and all the other Southern European countries that struggle to run a decent economy is because the euro is set up to benefit the biggest manufacturers…
Oh don’t worry they were struggling to do well before the euro. You could argue that being a euro member saved some of them during the crash.
No doubt. European austerity made it worse though post GFC. The US and China used a shed load more fiscal stimulus than the EU, and have added trillions of extra GDP as a result.
Why are you excluding energy and food?
Nevermind cherry picking 3 countries from the EU.
Also we’re comparing statistics from two different organisations. The ONS was significantly defunded early on in the Tory government’s rule under David Cameron, while other departments forming the checks and balances against Westminster were completely closed down - the clear message being that if the ONS didn’t step into line with the government’s narrative then their jobs would be next.
Meanwhile Eurostat exists to compare data between all EU countries, yet here we only see 3.
That’s a conspiracy theory. Show me one respected statistician that casts any doubt on the ONS’ output
They are the 3 European countries with high inflation, I’m guessing you don’t know the reasons why? Hint, energy price caps and their implementation.
It’s not a theory to say that the ONS was defunded in the early 2010’s and stopped tracking various metrics.
They are 3 European countries with high inflation, sure, but they’re not 3 EU countries that the UK is regularly compared with. They have been cherry picked for this graph.
And furthermore as far as I can tell Eurostat don’t do a CPI measurement that excludes energy, food, alcohol & tobacco. Which begs the question: why don’t they present the actual data they used to make the graph?
The simple truth is that the UK lost its direct comparison to EU countries when we left in 2019. Which, incidentally, is just before the start of this graph.
Any changes to ONS methodology is published openly. Again, source please.
Core inflation excludes volatilities, that’s literally the definition
And why not compare countries with high inflation?
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
Why would I provide evidence for your argument? Burden of proof is on you chap as you are the one challenging the OP.
Core inflation is the measure used by every central bank mate.
Excluding the 4 things that affect poor people the most? Cool 👍
Lol, I didn’t invent the definition of core inflation mate. Take it up with the economists