Most recent figures suggest that consumer prices are increasing, while average wages are stagnating – meaning that people across the country are facing higher costs of living. To finance higher costs of living, more and more people are borrowing.
The Bank of England revealed today that it forecasts inflation to rise to 2.8%, well above its 2% target. The combination of rising prices, stagnating incomes and slowing employment growth is bad news for households, as they face a higher cost of living across the board.
The world's eight richest individuals have as much wealth as the 3.6 billion people who make up the poorest half of the world, according to the latest Oxfam report.
According to new data from the Bank of England, consumer borrowing increased by its fastest rate for more than a decade in the run-up to the festive period, reaching levels not seen since the peak of the financial crisis. Consumer debt rose by 10.8 percent in total during the past 12 months – with credit card borrowing hitting a record high.
At the moment, give or take a bit of quantitative easing, all money is conjured into existence by private banks, 85% of it as loans on existing residential property. It’s a recipe for unaffordable housing and unmanageable private debt, but it’s also undemocratic; writes Zoe Williams in the Guardian, 9th January 2017.