British Inflation Numbers Out And They Tell An Interesting Story

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The CPI and PPI came out for GBP. THe two numberare iup on both a monthly and yearly basis.

In this video I discuss how the numbers are not growing at the same rate with the PPI outpacing the CPI. This is a major problem going forward since it tells us what is happening at the compnay level.


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Any data on how Britain, Germany and China have ended up in this energy crisis and why hasn't that occurred two years ago, or ten=

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I think the lockdown of the global economy last year had a lot to do with it. This pushed reserves to diminish and now they are facing harsh Winters and finding themselves in a rough position.

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Bang, I did it again... I just rehived your post!
!PIZZA
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Summary:
In this video, Task discusses the recent inflation data from the UK, focusing on the Consumer Price Index (CPI) and the Producer Price Index (PPI). He explains how the rising prices of commodities, especially energy, are impacting production costs and consumer prices. Task highlights a concerning trend where the cost of production is rising at a faster rate than the selling prices, leading to squeezed profit margins for manufacturers. He outlines the potential downstream effects of this imbalance, such as reduced investments, layoffs, and economic challenges. Task emphasizes that such scenarios could lead to decreased consumer spending and ultimately impact sales and prices in the broader economy.

Detailed Article:
Task delves into the macroeconomic situation in the UK, primarily analyzing the inflation data, CPI, and PPI. He stresses the significance of understanding the broader context beyond just looking at the headline numbers. Task explains the relationship between the rising prices of commodities, specifically driven by the bull market, and the implications for production costs.

The video underscores the impact of energy prices on overall production costs, highlighting how the Producer Price Index reflects these cost increases. Task notes the noticeable disparity between the month-over-month and year-over-year changes in both the CPI and PPI. While the CPI shows inflation running hot due to supply chain disruptions and commodity price increases, the PPI presents a concerning situation where the rising cost of production outpaces the increase in selling prices.

The recurring theme throughout the discussion is the unsustainability of a scenario where production costs escalate significantly without a proportional increase in sales prices. Task outlines the inevitable repercussions of squeezed profit margins for manufacturers, leading to potential consequences such as reduced investments, layoffs, and operational consolidations. He elaborates on the domino effect this could trigger in the economy, with decreasing consumer spending, impacting sales, and eventually forcing a decrease in demand for commodities.

Task concludes by emphasizing the global nature of the energy crisis and its implications for countries like Great Britain and Germany. He predicts challenging times ahead for British manufacturers faced with a substantial yearly increase in production costs. The video serves as a cautionary tale about the economic complexities arising from imbalances in production and selling prices, hinting at potential challenges and adjustments that may lie ahead in the UK and other affected economies.

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