Figures released yesterday show UK Consumer Price Index inflation rising by 0.5% to 3.8% in June 2008. This is the highest recorded level in 11 years. Commentators believe the rate will exceed 4% before the year ends.
Inflation is now almost double the Government's projected 2% target. Perhaps more importantly, the Retail Price Index - an alternative benchmark commonly used as a base in pay negotiations - is now at 4.6% and climbing.
Soaring food bills and rocketing fuel costs account for much of the current inflationary pressure. A cocktail of high transportation overheads and a shortage of certain basic crops conspire to aggravate the problem globally.
Research Findings
Today, consumer-comparison website U-Switch issues its “Quality of Life Index” comparing standards of living in ten European countries. It rates a number of factors such as taxation levels, retirement age, average weekly hours at work, holiday entitlements, food costs, education budgets, fuel and energy prices and, amongst other criteria, even the amount of annual sunshine falling on each country listed.
Averaging the results, UK and Ireland fare worst - coming ninth and tenth respectively - despite having the highest average net incomes. For the UK, this is mainly due to particularly poor investment in education and health, later retirement ages and very high energy bills.
Spain comes top of the table with best quality of life, France second then Germany, the Netherlands, Denmark, Sweden, Italy and Poland - Poland!!! - all beating the UK and Ireland.
Contextual Snapshot
Perhaps not coincidentally, a Spanish bank, Santander, is currently buying its second UK bank, Alliance & Leicester plc, for £1.3bn. There are already fears of lay-offs in the A&L workforce with rumours of a merger with Abbey plc (which Santander acquired in 2004).
- Which country do we think has the healthier economy?
- Which country evidently offers the best quality of life to its population?
Answers on a postcard!
