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
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
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.
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 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.
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.
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/
A factor, but clearly not the primary one.