All articles tagged with #cost of living crisis
The article discusses Donald Trump's difficulties in addressing the US's rising cost of living crisis, highlighting his struggles to effectively communicate or respond to economic challenges facing Americans.
Burberry issues a profit warning as it expects annual profits to be significantly lower than previously anticipated, citing a slowdown in luxury demand and consumers cutting back on expensive purchases like trenchcoats and scarves amid the cost of living crisis. The company's share price slumped 14% in early trading, and revenues fell 7% year on year. The luxury brand's premium priced products were deemed too expensive for household budgets, and the impact of the cost of living crisis on consumer spending is evident.
Despite the UK economy avoiding a recession, there are concerns about the ongoing cost-of-living crisis as many individuals struggle with high prices and interest rates. While inflation has fallen, the country is not yet out of the woods. Unlike the US, the Bank of England has not signaled any rate cuts, citing higher wage inflation in the UK. The economy has not experienced the expected recession, but there is no forecast for growth either, indicating a stagnant situation.
The UK headline inflation rate dropped sharply to 6.8% in July, in line with expectations, while core inflation remained unchanged at 6.9%. The Bank of England recently increased interest rates for the 14th consecutive time, and policymakers are closely monitoring the tight labor market. Despite wages growing at a record pace, the cost-of-living crisis is far from over, with consumers still facing soaring food prices and core inflation remaining stubborn. The drop in headline inflation may provide some reassurance, but it is largely attributed to lower energy bills rather than a broader easing of price pressures. Another rate rise from the Bank of England in September is likely, although concerns about the impact on the British economy may lead to a more evenly split vote.
The Bank of England has warned that struggling homeowners in the UK could face a significant increase in monthly mortgage repayments as fixed-rate deals expire and interest rates rise. Over 2 million mortgage holders are projected to see payments rise by £200 to £499 by the end of 2026, while almost 1 million people could see costs jump by over £500. However, the Bank noted that household debt remains below the peak reached in 2007. The warning comes as the average 2-year fixed mortgage rate in the UK rose to its highest level since 2008, raising concerns of a potential "mortgage catastrophe."
King Charles III and Queen Camilla faced protests and a lack of enthusiasm during their Scottish coronation in Edinburgh. Activists criticized the extravagance of the event amidst a cost-of-living crisis in the UK, calling it a "Game of Thrones cosplay exercise." Protestors chanted "Not my King" and booed the couple as they arrived at St Giles' Cathedral. The royal family's perceived tone-deafness to the struggles of ordinary families was highlighted, with critics questioning their self-awareness and the cost to taxpayers.
King Charles III and Queen Camilla faced protests and a lack of enthusiasm during their Scottish coronation, with activists criticizing the extravagance of the event amidst a cost-of-living crisis. Chants of "Not my King" and boos greeted the couple as they arrived at St Giles' Cathedral. The royal family's perceived tone-deafness to the struggles of ordinary families was highlighted, with critics questioning the palace's reluctance to give up costly traditions.
Yair Lapid, the opposition leader of Israel, criticized the proposed state budget for allocating funds to the Haredi community while allowing Haredi men to avoid employment. He argued that the budget fails to tackle the cost of living crisis or stimulate economic growth. The discretionary funds allocated by the government would be better spent achieving those goals. The budget includes NIS 3.7 billion for stipends for full-time Haredi yeshiva students who receive exemptions from military service and NIS 1.2 billion for private, non-supervised Haredi educational institutions. Lapid argued that the failure to require Haredi schools to teach core curriculum subjects meant that Haredi men would continue to face severe difficulties entering the job market even if they wanted to.
As the cost of living crisis hits the UK, many Brits are struggling to make ends meet, with some even resorting to eating dog food. Despite this, the government is preparing to spend tens of millions of taxpayers’ money on King Charles III’s coronation, showcasing the enormous wealth accumulated by the British monarchy. The King’s enormous private wealth and lavish lifestyle stand in stark contrast to the realities most people in the UK are currently living, with many working full time and still struggling to afford basic necessities like food and heating.
The Bank of England's chief economist, Huw Pill, has said that Britons need to accept that they are poorer due to Europe's energy shock, and that the "pass-the-parcel game" of passing on rising costs to employers and customers is generating persistent inflation. The comments have been met with indignation in Britain, which has been grappling with a cost-of-living crisis for the past year, with stubbornly high inflation rates and household energy bills more than double what they were two years ago.
UK inflation remained at 10.1% in March, driven by soaring food prices, while the cost-of-living crisis shows little sign of abating. Food and non-alcoholic beverage prices rose by 19.2% in the 12 months to March, experiencing their sharpest annual incline in more than 45 years. Despite residential energy subsidies, there is currently no respite from cost-of-living pressures. Economists expect inflation to fall sharply in April due to the base effects of the spike in energy prices triggered in April 2022 by Russia's invasion of Ukraine, while energy demand will inevitably fall through the summer. The Bank of England is expected to continue hiking interest rates, exerting further downward pressure on what is already expected to be the worst-performing major economy in the world over the next two years.