The GDP figures to be published later this morning, are expected to slow a slowing in growth of the UK economy. It’s starting to feel like things are getting worse with the economic situation.
I keep noticing that prices are going up everywhere, even though we are still being tempted with online and high street sales and special offers.
Of course the VAT increase has instantly raised the price of almost everything we buy, but it is not just rising prices which seems to be adding to the feeling of economic gloom.
Taxes seem to have crept up and if you have to pay a larger than expected tax bill before the 31st January, you too will be feeling that all is not well with the UK economy.
If we cannot spend as much as we want, or used to, then perhaps that will put a cap on inflation after all, and prevent too large a rise in interest rates.
So if that pound in your pocket is feeling a bit bedraggled and lonely, maybe that is the good thing for the path to economic recovery. Slowing inflation and growth may perhaps build a stronger foundation for the future.
Maybe, but it seems that we are all going to have to rein in our spending and pay more taxes for the recovery to continue. At times, that seems quite tough, particularly when you have to write a large cheque to the tax man.