Feeling the Pinch: Inflation and the cost of staying in business
Post categories: 5 live blog,ÌýChris Mason,Ìýpolitics
| 19:44 UK time, Wednesday, 16 November 2011
"The journey to a more balanced world economy will be long and arduous."
The words of the Governor of the ,
I guess it is the economic equivalent of a weatherman telling us it is going to rain every day for the next six months, but hey, it may only be cloudy on Wednesday 18th July 2012.
Plenty of analysts and commentators tell us the latest statistics are pretty grim. Take a look here at Stephanie Flanders' blog - Stephanie is the Ö÷²¥´óÐã's Economics Editor.
Youth unemployment on the up. The economy stagnating until the middle of next year.
But what prices going up - inflation?
The latest figures showed a slight fall during October compared to September. The rate is now 5%. And Sir Mervyn reckons it's going to fall sharply in the next few years.
But talking to people here in the Midlands over the last few days, there is a real scepticism about the figures.
Meet Simon Topman. He's the boss of the , which is based in Birmingham's Jewellery Quarter.
They make 6 million whistles a year. Simon tells me brass prices are up 25% compared to last year, and he reckons his business is having to ride out an inflation rate of 7%.
Prices are fixed in the short term because the whistles are quoted in catalogues. So margins are squeezed, and then squeezed some more.
After 30 years in the business, he's seen recessions before, and he's nervous.
Technically we might not be in recession now, but:
"This feels like a recession to me. Demand is going away, there is oversupply, and it is very difficult to get your price rise accepted if that is the prevailing economic condition," he says.
"Inflation is very bad news."
Listen to Chris's visit to the Acme Whistle Company
Are you feeling the pinch? Tell 5live about it here.
is 5live's Political Reporter. To launch 5live's Feeling the Pinch questionnaire, he's been reporting for Breakfast, Drive and Up All Night from Leicester, , and Birmingham.
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