Uk inflation compared to Spain

Today I woke to the BBC headlines that inflation has fell to 3.4% in February in the UK. Whilst I am pleased for the UK that this has happened I can't help to think what Martin Lewis said on Good Morning Britain. He said that something that you would have bought in 2022 for £100 now costs around £114. So whilst inflation has slowed living in the UK is much more expensive than it was in 2022, the reality is in the last two year period its unlikely that peoples wages have increased at the same rate. Then this evening the UK PM was on the BBC news giving an interview he seems to think that it is a great success that inflation has reduced, I myself am pleased for the UK it has, but that doesn’t make everyday items cheaper. The PM was questioned that although inflation has reduced, the cost of car insurance has substantially increased and doubled in some instances. The PM seemed to think that the acceptable line to take on this that there are some instances where the cost of services have increased in this way but overall inflation has fallen. He seemed not to connect the dots, or want to acknowledge that the cost of insurance was an issue. The cost of which will not only be apparent on an insurance policy but will filter through and hit peoples pocket when they go to the supermarket where the cost of transporting food will increase to this and be passed on to the consumer.

Interestingly a few weeks ago I had a conversation with a family member in the UK who had just had their car insurance renewal. It had increased by over £200 for a year. When my relative contacted their insurance company for an explanation they as told that following Brexit the cost of car parts had increased. It was not clear if this is because there are extra charges in obtaining them from the EU or if due to paperwork EU car part makers are not prepared to send them to the UK. This is clearly a benefit of Brexit, yet nobody is drawing attention to it, the British people are just accepting they have been fleeced just because a few of the elite in the Conservative Party didn’t want the UK to be within the EU.

In Spain its different, we have not really been affected by Brexit other having to register as resident in a different way from July 2020, and not initially being able to get hold of some of our British food cupboard staples. When the war in the Ukraine started I ill admit the cost of certain items in the supermarket increased, ie sunflower oil, butter etc. The cost of a government regulated priced gas bottle increased from around 16€ to 21-22€. Over time the prices seemed to have decreased, and now some prices are now back to reasonable levels. This is not to say overall that there has not been an increase, but over the last 2 years it certainly isn't nor does it feel anything like the UK at basically 14%. Increases in car insurance have been negligible. My last renewals I changed to a different company to get a better deal. The price I paid was lower than I was paying 2 years ago. Sadly in the UK even trying to change insurance companies for a better deal isn’t an option as there are no savings to be had, just increases across the board.

20/03/24 en Almería