Inflation and price rises make a huge problem in which those who adapt will win

Exmouth Community Food Larder manager Anthony Bernard. (Image: Archant)

Inflation is usually caused by wages and salaries rising faster than productivity, with bankers responding by raising interest rates to take money out of the economy to slow things down.

Our present cost of living crisis is not an inflationary spiral; the massive increase in fuel and food prices has already taken too much money out of our economy.

The biggest profiteer is Russia, using the reliance on its gas by Germany and others to blackmail the world.

Our primary concern should be those with low incomes; tax breaks will help everyone, especially high income tax payers. In short, the usual rules of economics are not relevant.

This is a new mess.

The heatwaves and floods of global warming make the situation much worse, crops failing or being washed away add to food shortages.

TV showed a zoo hosing down a rhinoceros to keep it cool while feeding it cabbages - lucky fellow, much better off than his chums in Africa.

Religious zealots may blame my imagined committee of the Heavenly Host for raising gas prices to slow the burning of fossil fuels and ease global warming, but I believe the message is for us to manage and enjoy our world.

The future will require more cautious management of resources on all our parts, especially money.

Increased fuel costs will encourage lower indoor temperatures this winter, with a reduction of air travel and cars - though electric cars may ease that problem.

The travel industry will not like less activity, but railways are already seeing a downturn with people adapting to partially work from home.

Assumptions are exaggerating forecasts; this winter's fuel usage will surely be lower than last year, so extrapolating spending from last winter into next winter is nonsense.

In the USA, and now locally, some prices have already started downwards.

Some energy providers are raising bills beyond sense; costs doubling do not justify quadrupling direct debit payments.

A minor energy supplier just announced stupendous profits; greed is to be found wherever it can turn a profit.

Government response should include resources to investigate fraud and imprison bandits.

However, prices really are rising substantially; failure of harvests here and in Europe will add more pressure to food costs; cheaper imports incur increased transport costs.

The whole situation is a big wake-up call for all of us; we will not to be able to afford many of the things we were used to. Some of us oldies remember a much simpler and cheaper lifestyle.

Cars were a luxury, the telephone was used sparingly, letters took days to arrive.

Today the internet gives instant connection and replies, even to New Zealand and Australia, with video face-time.

A friend already noted that eating out is now more expensive, but the quality is good.

Hospitality will raise prices to cover costs, including wages, and may raise quality to match the price.

Conversely, people are spending less on eating out, preferring to cook at home from cheaper ingredients.

This may be a good moment for excess staff in nail boutiques, tattoo parlours and in hospitality to foresee a reduction in customers.

The care industry and the NHS are crying out for staff; surely staff in hospitality, nail boutiques and tattoo parlours are all good at taking care of others.

We are a nation of improvisers when we need to be - the present crisis is a good moment to revise all those skills. 'Who adapts wins' could be the new slogan.