Why are things so expensive now in England?

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Illuminattiness

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I've not been living under a rock, I just want to understand exactly why prices have gone up. I'm not versed in economics. I've heard the word "inflation" been thrown about. What does it all mean? Simple explanations please.. no long quotes.
 
Inflation happens either when things are in short supply or when something happens to increase demand and there is no increase in goods to buy.

So when you go for a mortgage just now you are going to find it hard. Either they will refuse you outright or they will ask for a bigger deposit or charge you a higher rate of interest. This is because at the moment it is money that is in short supply.

If this continues people will find it harder to get a mortgage to buy houses so demand will fall and therefore prices will fall for the houses but not necessarily the prices of the mortgage!

With oil at the moment the various producers are refusing to release more stocks so the supply is tight and therefore when it sells the price can be pushed up. People want to buy it and will pay the higher price.

As already said the oil is essential for the production and delivery of goods so the goods themselves become dearer.
 
Floods in USA have destroyed half of world's grain so no bio-fuel and wheat (bread, pasta, rice, meat etc.) prices are up.

Oil price is up that means dearer transport costs.

Prepare to be hungry. Read about food price riots in Italy, Africa, Haiti, Mexico, India - consider yourself to be lucky...

This will only get worse...
 
every thing travels by gas and diesel,( trucks, trains, planes, and ships) and on top of it now natural disasters are also taking their toll on things, and things will get a whole lot worse and there is nothing any one can do about it
 
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