what is happening with their headline. , , ,, , headline. this is liz truss s attempt headline. this is liz truss s attempt to headline. this is liz truss s attempt to explain - headline. this is liz truss s attempt to explain what i headline. this is liz truss s| attempt to explain what her headline. this is liz truss s - attempt to explain what her thesis is and attempt to explain what her thesis is and you attempt to explain what her thesis is and you could argue there is some merit is and you could argue there is some merit in is and you could argue there is some merit in pointing out the fact britain merit in pointing out the fact britain has had a growth problem for some britain has had a growth problem for some time britain has had a growth problem for some time, something liz truss has wanted some time, something liz truss has wanted to some time, something liz truss has wanted to address, she mentioned it in every wanted to address, she mentioned it in ev
individual countries is also a function of two things. what were the initial conditions, and how have central banks and governments reacted. that is why you have a huge range of outcomes when you look at not just what inflation is today, but one inflation will be tomorrow and the day after. should we wait for things to improve in ukraine in order to bring inflation down? no. if we do, inflation will be entrenched in the system and we will repeat the very difficult time of the 70s where we not only have an inflation problem, but also have a growth problem. so let s hope that things get better, but there is a lot to do domestically to ensure that inflation does not become entrenched. standby, i just want to continue this conversation right after the break. i ve admiral james and mohammed al aryan, we will continue this conversation, stay with us.
much the case any more. that means paying at home, household budgets squeezed, more poverty and hunger and homelessness. but also the point is it is affecting everything will household, and the question is this. when you have that, does an inflation problem turn into a growth problem and cause a recession? 0ur political correspondent nick eardley is in westminster. the government have said they are ready to do more on multiple occasions when? that is the big question. the prime minister has been saying in the last hour that everybody knows that more support is coming. the question is how extensive that will be, and how quickly it will be delivered. the debate this week has focused on the idea of a windfall tax on energy companies. the idea would be to take some of the excess profits that energy companies have made and use that as support for people with paying their bills. labour have been
than months to come back down again. the forecast of the bank of england is that it will only take months. the reason is important. in the late 70s, unions, workers had big bargaining power in order to match their wage rises with the inflation rises. not so much the case any more. that means pain at home, household budgets are squeezed, more poverty, hunger and homelessness but also the point is it s affecting every household and the question is, when you have that, does an inflation problem turn into a growth problem and a risk of inflation? so how are you trying to cope with the big increases in the cost of living? 0ur consumer affairs correspondent colletta smith reports. when shopping is like a tenner more sometimes per week, itjust gets so much more expensive. bread, i mean, that s gone up. i think the bread that i have has gone up about 50p. kira is 19 and lives in greater manchester on her student loan and wages from her part timejob.
with higher energy costs, have not been seen for a0 years in this country, since march 1982. the lesson of history is that when inflation gets to these levels, it takes years to come back down again, as it did in the 19705 and nearly did in the 1990s, not the months currently predicted. it s not just about the worst inflation figures for decades. this problem is so broad based, affecting every single household in the country, either in the extraordinary monthly direct debits that energy companies are asking customers to pay or in prepayment meters. it s not a pinch, it s not a squeeze, it s a profound hit to household income. and when you take so many billions in spending power out of the economy, an inflation problem quickly turns into a growth problem. and the question is, how long is it going to last? the chancellor acknowledged economic fears at a dinner for business leaders tonight and promised some further help. there is no measure that any