Everything is getting more expensive – including money

Investors are about to start feeling rather more pain, says Merryn Somerset Webb – from the rising price of money.

Andrew Bailey, governor of the Bank of England
Central bankers like Andrew Bailey are set to inflict more pain
(Image credit: © Hollie Adams/Bloomberg via Getty Images)

Life has been getting more expensive. Anyone in doubt (not very many people at this point, I think) need only look to the latest releases on the matter from the Office for National Statistics. In the latter half of 2021, households in all income brackets saw their costs rise substantially – higher-income households by slightly more, thanks in part to rising transport prices (the better off drive more than the worse off), but everyone by well over 5%.

The British Retail Consortium had numbers out this week, too: according to its latest Shop Price Index, prices in the UK’s major outlets are rising at their fastest pace since 2011 – up 2.7% overall in the 12 months to April (food was up a little more at 3.5%). This doesn’t sound too bad in the great scheme of things. But look at the underlying cost pressures (all manufacturers report higher price rises in their inputs), and at last month’s numbers (2.1% and 3.3%), and you get a sense of the trend. Up.

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Merryn Somerset Webb

Merryn Somerset Webb started her career in Tokyo at public broadcaster NHK before becoming a Japanese equity broker at what was then Warburgs. She went on to work at SBC and UBS without moving from her desk in Kamiyacho (it was the age of mergers).

After five years in Japan she returned to work in the UK at Paribas. This soon became BNP Paribas. Again, no desk move was required. On leaving the City, Merryn helped The Week magazine with its City pages before becoming the launch editor of MoneyWeek in 2000 and taking on columns first in the Sunday Times and then in 2009 in the Financial Times

Twenty years on, MoneyWeek is the best-selling financial magazine in the UK. Merryn was its Editor in Chief until 2022. She is now a senior columnist at Bloomberg and host of the Merryn Talks Money podcast -  but still writes for Moneyweek monthly. 

Merryn is also is a non executive director of two investment trusts – BlackRock Throgmorton, and the Murray Income Investment Trust.