Macroeconomics: UK economy, IB Economics

The human cost of the  high inflation and the ongoing cost of living crisis is explored in this Guardian piece, looking at what higher inflation means for the Daly family in Norwich, who were first spoken to in 2021. Is it sad that when I started to read the article, I actually recognised them?

It looks at a variety of things: the general macroeconomic environment, local factors, changing consumer shopping habits - with a nice application of YED - and the rising cost of childcare. 

In short, lots to think about, and lots of economics to apply.

Food price inflation revealed in this Guardian piece looking at how the price of grocery items has risen by nearly £800 this year. Milk, eggs and pet food saw the highest increases but the latest Kantar data also reflects seasonal factors such as dry January and Veganuary too!

An interesting look at how coronavirus has altered shopping habits - with discounter, Lidl, and delivery firm, Just Eat, seeing sales surge over Christmas.

Even pre-lockdown, both had been doing well, but perhaps the pandemic has accelerated this - with Lidl gaining market share at others' expense, and interestingly its Deluxe range also selling exceptionally well.

It's difficult to pin this to a particular board - microeconomic, in that it reflects changing shopping habits; macroeconomics in terms of job creation. And rarely, good news...

I've already commented on this data - but High Street footfall hasd fallen to its lowest level since 2008, as changing consumer tastes have shifted people online in the search for bargains. 

Not good news for growth, I suspect.

The annual ONS change to the consumption bundle has been announced today, with the usual raft of movements into and out of the bundle in line with consumer shopping habits. 

In this case, e-bikes, frozen berries, home security cameras, soundbars and sanitary towels are in and some CDs, digital cameras, 20 packs of super-king size cigarettes, alcopops and tampons are out. 

The changes are designed to keep CPI relevant and reflecting what consumers actually buy in a given year. 

Has there been a marked change in consumer behaviour with people now keener to order takeaway food rather than to eat in? 

Certainly this article implies that the taste for takeaways is being sustained as the economy recovers.  

And still they come: expect many more of these stories in the weeks and months to come. M&S is cutting 7,000 jobs citing a "material shift in trade". It seems highly likely that other retailers will follow suit, if they haven't already. 

Changing consumer tastes, and a decline in high street footfall will be driving this.

Not much in the way of economic principles that appear in a post-16 syllabus but I 'scoop' this because it's just a thought-provoking read about the nature of our shopping habits and how coronavirus might alter some ingrained habits, with people buying even more online and favouring local stores rather than the High Street.

One conclusion seems self-evident from the individual stories covered - I suspect that coffee chains, like Starbucks, are going to experience a significant drop in custom after lockdown.

The Daily Telegraph looks at the switch from the high street to online retail, detailing how retail has changed.