OK....
So the nation is in a period of mourning until the Queens burial on Monday the 19th of Sep.
The new Prime Minister has taken action on the cost of energy to households. Here in the UK the government has Cap on the annual cost of household energy. This was set to rise from ?1971 to ?2500. Then by spring it would rise to ?3549. She has halted any price Cap rises and kept it at ?1971 until Jan 23 at the least.
This is positive news since the fuel andbenergy sector have been posting large profits since the energy crunch started. In 2021 Russia supplied to rhe UK 4% of natural gas, 9% of oil and 27% of coal. So the direct import link to Russia is not huge. Fuel prices have gone down a good bit as of late.
The concern is that much of the rest of Europe is much more reliant on Russia. As time goes on this could impact Europe resolve on sanction on Russia. The whole situation is way to complex and chaotic to allow for any coherent predictions on what will happen.
We in the UK have not as of yet seen large inflation of prices in other sectors of the economy. However I can see how there will be a slow rise in prices until stability returns.
Of interest is that instead of wide scale protests over the cost of living increases. There were a significant amount of small strikes by unions across the economy for pay rises to match the rising cost of living. This was very effective in forcing the government to step in to mitigate cost of living crisis.
Will update as things change over here.
