It seems likely that in the new year prices of essentials like gas and electricity will increase as well as imported food. The US dollar is the international reserve currency and is used for international trade. The pound has been devalued against the dollar. Last November the pound bought $1.60, now it buys just $1.24. While food manufacturers try to absorb the extra cost, energy providers will eventually pass the cost on to us the consumers. Higher interest rates and a depreciating currency will drive inflation.
The economy is still recovering from the Brexit vote, but the pound is still down. There is still a glut of oil worldwide and so we can expect rising food prices just like in 2008 but at least this time petrol prices shouldn’t go up too much. It’s not only imported food that could rise in price but home produced food too as farmers face rising costs. The rising prices could be offset by the supermarket price war, but they won’t be cutting prices across the board.
We tend to think money is wealth, but it’s not; it’s just a unit of exchange for exchanging wealth. The wealth is the stuff we produce; goods and services. Some things like property will appear to go up in value. The sun appears to rise in the morning, but we know that the sun doesn’t go around the earth. The earth appears flat, but we know it’s not. Money seems to keep it’s value, but it doesn’t really, it goes down in value when central banks increase the money supply. Everyone who has money then loses out and people who have wealth in oil, gold or some other commodities like property, will gain.