Question for the experts: Inflation

[milanbenes]

Team,

I think we can all agree, unofficial inflation seems quite high, some of the numbers quoted around:

petrol is now 20% more than last year

electricity

gas

food bread meat milk etc


Now then,

experts,

if we are moving into a period of high(er) inflation

wouldn't it be a good idea to get a mortgage and buy a house asap at today's prices

considering that over the next few years if we go through a period of high inflation then the prices today will seem cheap in a few years time and inflation will actually erode the mortgage debt ?


just a thought, what do I know eh, what do you experts think ?

Milan.

[DimPrawn]

Only if real pay keeps pace with real inflation, which it will not.

Basically the vast majority of people are just going to get poorer in real terms.

[Francko]

if we are moving into a period of high(er) inflation

wouldn't it be a good idea to get a mortgage and buy a house asap at today's prices

Man, you are making a big mess.

1) What goods inflation has got to do with house prices inflation? In the last ten years goods inflation was very low while house prices bubbled.

2) Shouldn't you distinguish between salary inflation and goods inflation? The two might not happen at the same time. Italy is a good example. After the euros goods inflation was very high while salary inflation was very low.

[BrilloPad]

Surely the BofE keep inflation at about 2% (+- 1%)?

And if so, how is it that food/petrol/utility inflation is shooting ahead?

[DimPrawn]

Surely the BofE keep inflation at about 2% (+- 1%)?

And if so, how is it that food/petrol/utility inflation is shooting ahead?

Post of the day.

[Bagpuss]

High inflation = uncompetitiveness= job loses = contraction of money supply= falling housing market

HTH as they say

[shaunbhoy]

Man, you are making a big mess.

1) What goods inflation has got to do with house prices inflation? In the last ten years goods inflation was very low while house prices bubbled.

2) Shouldn't you distinguish between salary inflation and goods inflation? The two might not happen at the same time. Italy is a good example. After the euros goods inflation was very high while salary inflation was very low.

Francko, Id have thought by now you would have sussed out that nobody takes milan seriously about matters such as this. He has the same ability to comprehend complex and abstract issues as does an Aardvark. Ally that impairment to the fact that he also possesses the memory retention skills of a Pilchard, and thus fails even to be able to recall the answers given the last time we covered this topic, and it does not take long to realise that it is best to just let him ramble on in his blissful ignorance.

HTH

[Marina]

Italy is a good example. After the euros goods inflation was very high while salary inflation was very low.

But doesn't goods inflation lead to salary inflation, as surely as pie inflation leads to tummy inflation?

[DimPrawn]

But doesn't goods inflation lead to salary inflation, as surely as pie inflation leads to tummy inflation?

Ask Threaded.

[Francko]

But doesn't goods inflation lead to salary inflation, as surely as pie inflation leads to tummy inflation?

Only if the job market was fully competitive. Not when you get someone in another part of the world to do your job for 10 dollars an hour.