Inflation

[BlueLoo]

The missus who has no interest or exposure to current financial trends noted to me that she is noticing a big increase in prices when she is shopping.

My last pay review was with the understanding that the CPI was approaching 6% annual. (Ireland).

This is going to be hot news for the next few years. This year we will all be a bit poorer than last.

 

[ReganAndCarter]

Wonder what the real inflation rate is?

With NI increases, fiscal drag due to tax bands not being raised, food up, massive electricity and gas increases, petrol/diesel at record prices plus interest rate increases, etc, etc, etc - will be a very uncomfortable year for those whose budgets are already on the limit.

 

[BlueLoo]

Wonder what the real inflation rate is?

With NI increases, fiscal drag due to tax bands not being raised, food up, massive electricity and gas increases, petrol/diesel at record prices plus interest rate increases, etc, etc, etc - will be a very uncomfortable year for those whose budgets are already on the limit.

Well, listening to a recent podcast, the "real" inflation rate is considered to be Inflation rate-Interest rate.
We have near-ZIRP at the moment, so high inflation is a real problem. This is why you are seeing a dash for assets in the markets.

Gonna be a difficult year for sure.

 

[gas112]

inflation one thing wait until the interest rates rise. Rising mortgages are going to put loads under

 

[Deleted member 18243]

The price inflation we are now experiencing is due to the extra £400 billion of money which was printed to pay for the covid madness of the past two years. This extra money dilutes all the money already in circulation.

All of you who support the covid restrictions without protest are to blame.

 

[Deleted member 292770]

All the people who have and are maxxxed out on credit cards , mortgage payments , pcp’s and loans should be afraid.

 

[Deleted member 292770]

The price inflation we are now experiencing is due to the extra £400 billion of money which was printed to pay for the covid madness of the past two years. This extra money dilutes all the money already in circulation.

All of you who support the covid restrictions without protest are to blame.

Our garandchildren and they’re children will be paying for an upgrade to the common cold.

 

[denso13]

All of you who support the covid restrictions without protest are to blame.

All of the antivaxxer sheeple who are prolonging things are to blame.

 

[gas112]

All of the antivaxxer sheeple who are prolonging things are to blame.

how much free money did you take ?

 

[denso13]

how much free money did you take ?

None, I've been working throughout.

 

[ajohn]

The BE should raise interest rates and should have done some time ago. So much for inflation control. It has also been mentioned as a way of preventing wage inflation spirals. That aspect has always sounded a little odd to me. Labour sector demand has always tended to control labour costs particularly in the PAYE taxed sectors.

Don't worry. Going green and a couple of mega battery factories will sort it all out.

 

[Notch7]

This extra money dilutes all the money already in circulation

What does that actually mean.

how does extra money, dilute money?

 

[BlueLoo]

inflation one thing wait until the interest rates rise. Rising mortgages are going to put loads under

B.i.n.g.o.

Yes. Low interest rates have been an absolute economic abhoration for the last decade plus.
Zirp can't last forever and interest rates are the only real arsenal CBs have against inflation.

Interesting times are ahead.

 

[BlueLoo]

What does that actually mean.

how does extra money, dilute money?

Relatively.

FIAT money has no finite reference, only itself. So, you increase money supply (printing) and eventually you devalue the currency.

The effects of which are inflation and deflation.

Inflation of price and deflation of currency.

 

[noseall]

All the people who have and are maxxxed out on credit cards , mortgage payments , pcp’s and loans should be afraid.

PHEW!