Question for the experts: Inflation

[hyperD]

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.

That pretty much sums up now and the next few years.

Published inflation figure <> true inflation

Proclaimed income tax levels <> true tax via council and other stealth measures

You will be considerably poorer than the piggies with their snouts in the EU trough.


This budget is a crock of sh1t... I hope Ozzy or Cable comes back with something sensible to counteract the bulltulip going on...

If I hear the word "child poverty" again I shall eat another slice of fois gras...

[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.

[DimPrawn]

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

Ask Threaded.

[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?

[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

[Bagpuss]

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

HTH as they say

[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.

[BrilloPad]

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

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

[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.

[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.

[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.