Inflation to rise by 5%

 Dear Merv!

I can tell by the look on your face (both sides of it!!!) that you are a worried man. The economy continues to shrink, the national debt increases, jobs are disappearing and prices of commodities just keep increasing. According the BBC, the rising costs of hotels, restaurants, furniture, transport, fuel and alcohol  are adding to the rate of inflation. Which is why, and sorry to rub your nose in it as I can see you’re in the sticky stuff and you’re up to your armpits, I have not felt the increase in VAT or general price increases.     

I’m just making matters worse for you all round. I don’t feel your pain because I’ve given up shopping. I ration water and energy, I walk or cycle and only use the car when I can’t possibly get there by any other means. I use old knickers as dusters and I’m sitting here in three layers so I don’t have to put the heating on. I go without anything I can’t get from Freecycle and I can spread ‘Flora’ thinner than anyone else who has ever tried to get into the Guiness book of records.

I’m just not helping am I Merv? You and the rest of the bean counters in the Bank of England and your mates in the treasury, will just have to hold your nerve. But then, sorry to point this out, but you are in your older years and we’ve been here before……………many times. We had mortgage rates of 15% and could only get a mortgage at three times our income with a reference from our employers, six months bank statements and pay slips and a 25% deposit. Credit card limits were equivilant of three months wages. People forget how tough it was to get a job and some where to live at the end of the 70’s and beginning of the 80’s.

Well, we’re back here again and like you, I will see this pattern repeat itself. Well you and the rest of the city boys can continue this all you like, but I, and the rest of the frugal army will not be fighting on the side of consumerism and ‘growth’ ever again. We will do little to contribute the debt, we will do nothing to add to the up turn or down turn, in fact we will sustain from as much economic activity as possible. In future, there will be more and more of us who will say no to credit, no to shopping, no to new gadgets and yes to bird watching, yes to star gazing, yes to quilting and yes to rambling. I’m sorry I can’t help you with the economy but I’m abstaining from involvement. From now on, if I’m fed, if I’m wearing a clean pair of knickers and the roof over my head doesn’t leak; then I’m done.

Yours truly,



31 thoughts on “Inflation to rise by 5%

  1. Well said. Too true. A mortgage paid off in blood, sweat and tears, never had a credit card, haven't bought a new item of clothing for years, walk everywhere because I've never been able to afford driving lessons. I live within my means, I used to get laughed at, who's laughing now? x


  2. Well said, but do remember that Merv is your friend (at the moment). As someone with debt, a mortgage and a safe(ish) job, you are in sync with the economic cycle.

    If you can turn cash positive within the next 1 – 2 years and start to accumulate some capital by remaining frugal, then you should benefit further with rising interest rates and lowering inflation.


  3. Oh, I love it!! You are so funny and hit the nail on the head with every sentence. This Yank is behind you and I could have written this letter to my senator! I haven't been in a store (except the grocery) in weeks and am not planning on going anytime soon. The last time I was in a non-grocery store I didn't buy a thing! I have been stitching, cleaning, watching movies on TV, walking with friends on the trails, and sending things I don't want to the thrift stores. I also wear a jacket in the house. Life is still wonderful!!


  4. Well said! You could do with sending that to the *ankers. I haven't put the B in as I rather think of them with another letter in front.

    Yes, I remember the 15% mortgage interest rate when I bought a house in the early 80s. There was also mortgage tax relief? Remember that?

    Other things help fuel the rising cost of living – astronomical insurance rates for small businesses, on the breadline and having to take up credit to keep going, until things improve, not for luxury items.


  5. I've been reading your blog for a few months now and while I'm always frugal with food and cloths and follow money saving principals I was just looking at a new phone but do you know you are so right!
    Bugger the new purchases until they are absolutely critical and I'll save any spare pennies towards my debt/ retirement/ backup savings. You are an inspiration!! Thanks!


  6. Hell, I remember the 21% mortgage rate here in Canada in the early

    A big part of the problem is the sense of entitlement that so many people have. They deserve two cars, the huge house, the new bags and clothes every season.


  7. I've only just found your blog, thanks to little tin bird.
    I totally agree with everything I have read so far.
    I've allways been called Mean, or tighter than a crabs bum, and now everyone is having to live the same way. (small gloaty chuckle!)
    My nan said *never a lender or borrower be* I've learnt that the hard way!!


  8. I agree with everything except the bit about being here before.

    Last time out we weren't looking at record levels of personal debt because those ever so helpful bean counters hadn't been dishing credit cards out left right and chelsea. Nor were loans so common, or the average house price so much higher than the average wage. Nor were fuel prices at an all time record high. Or record levels of government debt

    There are many more things that I probably haven't taken into account either.

    I reckon Merv is looking so harried because the economy is the 20 year old banger that has been repaired and repaired too many times and finally is beyond fixing and he doesn't want to be the man to have to write another letter explaining why!

    So am I sorry for him and his kind? Nope, capitalism and materialism made it's bed…


  9. I've done the whole living on credit thing. I got into so much trouble and had to go to a debt management agency. Not one of these new fangels whings where they get to write off your debt. No I had to live on the bare minimum to pay it off. I scrimped and saved and got it payed off 2 years earlier than they anticipated. The only extravagance I had was a weekly train to see my boyfriend who was in a worse financial state than me!

    I will never get into debt like that again. Credit is evil! Well said FQ, well said.


  10. I remember my parents having an early fixed rate mortgage in the 1980's fixed at 9%. Everyone laughed. Dad was laughing when the interest rate shot up and he was still paying the same until the day it was paid off. We never had a car until the day he retired.
    I want a higher interest rate, 0.5% does sod all on my paltry savings I may as well put it under the bed!

    Our neighbours are forever getting deliveries from Next and Argos, they are soon to be a THREE car family (yet there is a bus to college for their eldest!). Granted they have no mortgage but the chap has a back problem and if he has to give up his job because of it (heavy work) they will be really stuffed.


  11. Sadly, the people who are in charge of the economy are the least affected by it. They are rich. It is the common working class who are suffering. When we all get sick enough of living hand to mouth, things will radically change. I know I am tired of the rich getting richer and watching the middle class shrink into obscurity. Great post.


  12. Well said Frugal Q. I wish it were possible for you to deliver that post verbally and in person on the floor of the 'House'. I'd love to see those MPs “working on our behalf” squirm when faced with clear commonsense thinking.

    Keep it up.

    Linda xx


  13. Nice one; I'm with you all the way, especially the bird watching and star gazing (see my “I'm just a sad old geek” post). I bought my first house before the inflationary hike of the early eighties, but still had to suffer the high interest rates. Why don't we ever learn? Capitalism is a doomed system from the word go; usury ensures that the system will eventually inflate itself into meltdown, which is exactly what's happening now, and no amount of patching up will save it. Froogs are the future!!!


  14. I believe there is a difference between foolish and responsible spending. In the past decade people spent foolishly. Some spending has to take place so that the economy can function. But I agree that the spending should come from what consumers can afford and actually have the cash (not credit) to pay for it.

    I'm trying hard to give up my fear of spending money and thinking we can't afford to buy something today for fear of the future.

    Higher prices are coming to the US, but that is in part due to artificially low prices over the past few years along with the principle of supply and demand. I fear if we buy nothing, it means prices will go higher because the manufacture is selling less. Volume can bring prices down.

    I think the issue is more complex than what we feel in our wallets on the surface.


  15. I love this post! In fact I love your whole blog. In a world of internet “stuff” about debt and reducing spending etc, your blog stands out as it's so 'real'. I relate to a lot of what you write about.

    Keep up the amazing work as you are most definitely, an inspiration.

    Thank you.


Leave a Reply

Fill in your details below or click an icon to log in: Logo

You are commenting using your account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s