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Originally Posted by Scott McD
I've noticed gas prices sneaking up almost every couple of days now but as usual it's all kept very quiet...
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The mainstream media won't report it heavily as it could create hysteria and governments *always* under report inflation so you will never find out the real damage except through your wallet. Precisely right.
The other thing about the falling pound is that everything, including energy as you say, is going to be going up when measured in pounds since it is mostly imported and priced in foreign currency. That includes all commodities including food.
Now inflation is a lagging indicator so when the pound falls this low, you wont really see the prices change for quite some time but when they do, they'll be going up, some say as much as 14% higher on food prices because the cost of importing them from a foreign country against which your currency has fallen is higher and because the price of oil (priced in dollars) is also higher.
I do think the pound is going lower though as interest rates remain near zero and there's hardly many reasons to own the pound unless you do business there or live there. There will be more brexit talk and more negative views about the UK especially when we start getting more press coverage of this:
SNP's Nicola Sturgeon announces new independence referendum bill - BBC News
Some thinking for you GBP people because if Scotland does separate which is more likely than ever before, I could easily see the pound fall under 1 US dollar.
That would be a HUGE change from a century ago when you got five USD for 1 pound: 1 GBP = 5 USD