ECONOMICS can be a baffling science and one which can even stump the so-called "experts". This summer it was revealed UK inflation rose to its highest level in nearly six years, with some commentators putting this down to Brexit. But what actually is inflation? What is inflation? Inflation is defined as a general increase in prices and fall in the purchasing value of money. If inflation is 10 per cent, a handbag costing £50 will be priced at £55 in a years time. Whilst that sounds relatively simple, it is in fact one of the most important aspects of economics. It has a massive impact on people's wages and buying power which can really affect families bank balances. Inflation is also what the Bank of England uses as a guide when it is setting interest rates. The current UK interest rate has risen to 3.1 per cent - its highest level since 2011. How is it measured? Inflation is measured by the Office of National Statistics who collect the prices of more than 100,000 … [Read more...] about What is the current UK inflation rate, how is it measured, what does it mean and what effect does it have on prices and the economy?
3 causes of inflation
With regards to the "economic war" over "trade" and "exchange rate-parity" channels triggered by the U.S., countries have accelerated steps to soften or eliminate the effects of the U.S.' open and implicit economic sanctions with a series of countermeasures.First of all, the depreciation of local currencies against the U.S. dollar can be defined as a development that undermines the U.S. advantage in the "trade" war. The compelling aspect of this process for Turkey was what the Turkish business world got caught in, the "trade" and "exchange rate" war, at a high "open position." This is why, there has been a debate over the last few months between the Turkish banking sector and the real sector on the "deposit deficit" for foreign currency denominated credits, and it is necessary for us to get through this global war – without driving the relationship between the real sector and the banking sector to a breaking point – with a "win-win" formula for both sides following the … [Read more...] about The source of growth in 2019 will be foreign demand
The number of people claiming jobless benefits in South Tyneside has risen in the last month, according to the latest Government figures. In South Tyneside the number of people claiming out-of-work benefits rose by 30, say the new statistics, released today.In July there were 4,325 people claiming jobless benefit, but the figure rose to 4,355 in August.The figure equates to 4.7% of work-age people in the borough, compared to a regional average of 3.6% and 2.2% nationally.Employment in the North East stands at 1,195,000 or 70.8% - a fall of 34,000 over the quarter and 17,000 over the year. This compares to a rate of 75.5% nationally.North East unemployment stands at 56,000 or 4.4% - a fall of 3,000 over the quarter and 22,000 over the year. This compares to a rate of 4.0% nationally.Paul Carbert, policy adviser, North East England Chamber of Commerce said: “There is a gap opening up between our employment rate and the national average. “It is also a worry that the number of … [Read more...] about Number of jobless benefit claimants up in South Tyneside, say latest figures
The newly minted currency, known as the sovereign bolivar, was accompanied an increase in gas prices for some drivers and a modest ease in the currency controls. By removing the zeros, the president Maduro is looking to solve what economists call hyperinflation’s wheelbarrow problem — the point when the currency has become so worthless that a wheelbarrow of cash is necessary to make purchases. And the figures of inflation keep around 100,000 percent and might reach 1,000,000 percent according to the IMF. But the problem isn’t to do with the zeros, but rather with the cause. The Venezuelan government depends on sales from its state oil company to pay its debts. But mismanagement allowed production to sink to 1.2 million barrels a day in July — on par with the monthly rate in 1947. A swap economy In the hyper-inflationary South American country, where bank notes are as difficult to find as chronically scarce food and medicine, Venezuelans are increasingly … [Read more...] about With a projected 1 million pct inflation, Venezuela moves back to barter
STARVING Estella Martinez looks close to breaking point as she stands on a pollution-choked street wearing a headband made of worthless bills. Bent and gaunt, the grandmother has not had a proper meal in days and spent all night outside the state-owned Bicentenario Bank hoping to collect her pension and disability money. But she was turned away. Her cash had not arrived. The Venezuela economy is in freefall and hyperinflation has brought the country to its knees. Jeremy Corbyn calls up Venezuelan leader Nicolas Maduro to congratulate him Speaking out to The Sun on Sunday, the 68-year-old tore into the failing socialist policies Labour leader Jeremy Corbyn wants to imitate. She said: “I have lived here all of my life and we have never had it so bad. This is a disaster. “I don’t have anything. I should get my pension and my disability payment for my spinal condition. “I just want to get a coffee or something to take away the hunger. I can’t remember when … [Read more...] about The terrible reality of life inside the Labour leader’s socialist utopia of Venezuela with hyper inflation and millions starving