The head of major supermarket Tesco has warned that the people in the UK are “for the first time in a generation facing true food poverty”.
A warning of “real food poverty” is a warning that the former chief economist of the Bank of England, with many in countries struggling with rising food and fuel costs due to inflation, will continue to see such inflationary conditions tormenting everyday people. It came as a warning that it could happen. age.
According to report by The TimesJohn Allan, president of supermarket giant Tesco, said many who visit his stores are now seriously struggling to make a living.
“I was at a store on a Friday and for the first time in years I heard a customer say to the cashier, ‘Stop when you hit £40, I don’t want to spend a penny on it'” The Grocery Tsar reports:
“I think a lot of people are struggling to keep their homes warm and feed their families,” he said. “And I think we are witnessing true food poverty for the first time in a generation.”
Allen continued to hope that the government would intervene to reduce the burden on those at risk, suggesting that the government could cancel planned payroll tax increases, allowing citizens to spend more.
Inflation crisis: Minister denounces ‘backup’ calls to get citizens to buy cheaper foodhttps://t.co/qWjf7Oa6m8
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It seems unlikely that the government will withdraw the planned tax hikes at this stage, but if the Bank of England warns that inflation could reach 10%, it can definitely do it if it has more cash in its current accounts. this year.
To make matters worse, however, a think tank head who had previously served as chief economist for the Bank of England said: warning The harmful inflation the UK is facing could last for years.
“I am a little afraid. [this inflation] You can stay for a while.” According to a report by Andy Haldane tutelar.
“It’s not going to come and go in a few months,” he continued. “I think it could be years, not months.”
Meanwhile, another economic strategist, Mike Harris, founder of Cribstone Strategic Macro, said: warning Comparing the current situation to the situation the US Federal Reserve faced just before the 2008 crash, CNBC said the UK economy is in an extremely fragile position as a result of massive inflation.
Harris justified his comparison by arguing that the Bank of England is not only failing to solve the problem in the long run, but is also taking steps that will aggressively damage the country’s mortgage market.
“…we are working with the Bank of England [former governor] Mark Carney didn’t do what he was supposed to,” the strategist told the US cable channel recently.
“It’s a little bit like [Federal Reserve] In 2007 and before, people were allowed to get mortgage loans when they knew they couldn’t repay when house prices went down because they had to refinance. So there’s an inherent unsustainability,” he explained, explaining the problem inflation poses to UK lending. market. “The UK is currently one of the most vulnerable countries in the world.”
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