Our chancellor, yesterday on the radio - "It will be a difficult year right across the world, but the fundamentals of the British economy are strong because of what we have done over the last 10 years. They will remain strong."
The Governor of the Bank of England - "The higher level of energy and food prices is a genuine reduction in our standard of living relative to where it would otherwise have been. ..... This is because of the higher prices that all of us are having to pay." And "Looking several years ahead, there’s no reason to expect house prices to be markedly above where they are now. It’s conceivable there might be falls in house prices."
Full story from The Telegraph.
So there you have it. Everything's fine, the economy is robust and will remain strong. That's the message from our Gov. But the boss of the Bank of England issues a strong warning that all is not well and we had all better tighten our belts.
Also interesting to note that whilst inflation reaches an official 2.2% (I think that was what they said yesterday) the real cost of living increase is some 6-7%, and that excludes any forthcoming council tax increases.
I guess who you believe the most rather depends on how thin you wallet is feeling. I know mine is beginning to feel that it's been put on rations. And my dilemma? All this is happening just when I was considering what I could spare in terms of putting in extra insulation in order to mitigate the ever increasing heating bills somewhat.
Ho hum! Spend now to Save later, or, Save now to Spend later? Now that's a predicament under these circumstances. What do you recommend?
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