Inflation hits double digits for the first time since 1982: How does today compare to 40 years ago?

This is Money Podcast

This is Money

Business News, Business, Investing, News

4.1 • 650 Ratings

🗓️ 19 August 2022

⏱️ 52 minutes

🔗️ Recording | iTunes | RSS

🧾️ Download transcript

Summary

Inflation is up again with CPI now measured at 10.1 per cent, the highest since February 1982, when Margaret Thatcher was Prime Minister.

How does this bout of inflation compare to then?

Lee Boyce, Helen Crane and Georgie Frost discuss the higher than forecast inflation rate and what is driving it.

With that rate of inflation soaring, a majority of economists believe another 0.5 percentage point increase in base rate is on the cards next month.

But what would a base rate of 3, 5 or 7 per cent do to mortgage rates and property prices?

Britons are estimated to have billions 'lost' in pension, investment and bank accounts – how do you go about tracking it down?

And with thousands of students opening their A Level results this week, Lee reveals how he has already built a £10,000 investment pot for his three-year-old, in case she decides to go into further education.

Transcript

Click on a timestamp to play from that location

0:00.0	Welcome to This Is Money Podcast. I'm Georgie Frost and joining me and Deputy Editor Lee Boyce
0:07.1	today is Assistant Editor Ellen Crane. And coming up, inflation is up again. But which items
0:13.4	have been hitting our pockets the hardest and what was life like back when the cost of living
0:18.0	was last this high way back in 1982. It looks likely that the
0:23.6	base rate could rise to 2.25% next month, but what about if it hits 3, 5 or even 7%? What
0:30.9	would happen to mortgage rates then? Also today we uncover Britain's lost billions and Lee
0:35.7	looks at savings for his daughter's future.
0:38.4	Don't forget, we start up to date with all the latest to breaking money news.
0:41.3	Just go to this ismoney.co.uk or download the app.
0:45.8	Market updates and conversations around the financial world don't have to be boring.
0:50.0	The Digest and Invest podcast by E. Toro is a great way to tune into what's happening in a fun and easily digestible format.
0:57.0	Discover the Digest and Invest podcast at Eatoro.com forward slash academy forward slash podcasts.
1:03.1	But first, inflation is up again. CBI hit 10.1% last month's food, sadly being one of the big drivers. The last time we saw it,
1:12.7	this high was back in February 1982 when CPI was 10.4%. So we thought we'd take a look at what
1:19.7	life and the economy was really like back then. Bear in mind that none of us here were either
1:25.0	alive or, in my case, old enough to remember. But first,
1:29.1	Lee, a quick one, if you would, welcome to you both about the latest inflation figures, Lee.
1:35.4	Not a huge surprise has come up, but a bit more than we were expecting. What's the course?
1:39.7	Yeah, I mean, it's one of those things, isn't it? We're expecting inflation to keep rising
1:43.5	and to keep rising in the next few months. And by how high and how fast, there's been all sorts of measures and guesses and predictions. Now, when we actually get these cold, hard facts and stats and see it in actual written down and it's gone over double digits, and then that's quite a significant sort of milestone when you see it go beyond 10%
2:02.4	CPI measure of inflation, which is the measure of inflation, though flawed, what a lot of
2:06.9	people will take as the actual measure of inflation a lot of people use.
	...

Please login to see the full transcript.

Previous episode | Next episode

Disclaimer: The podcast and artwork embedded on this page are from This is Money, and are the property of its owner and not affiliated with or endorsed by Tapesearch.

Generated transcripts are the property of This is Money and are distributed freely under the Fair Use doctrine. Transcripts generated by Tapesearch are not guaranteed to be accurate.