Inflation or Deflation, where are we going ?

StevieJ

lostinrates wrote: »

I nterestingly the price of tripe, in UK, has really shot up. In trying to sorce it I keep coming up with the reply that because they are eating more tripe eleswhere in Europe as a budget food its seriously limiting the amount of green tripe available for dog food.

I bet tripe increase inprice would show a very high impact on my personal inflation in calculated!

Get it by the bucket load on here

tommy75

So what is the outlook for people who have been jumping on the housing ladder now at rates up to 6.5%? Are we looking at more repossessions in 2-3 years time when their contracts end? Will the government not have to protect these people aswell if inflation were to hit double figures?

Really2

tommy75 wrote: »

So what is the outlook for people who have been jumping on the housing ladder now at rates up to 6.5%? Are we looking at more repossessions in 2-3 years time when their contracts end? Will the government not have to protect these people aswell?

Good, SVR for most lenders will most probably be below that.
Or a 4.99 fix now for 5-10 years. I Really cant see 10%+ interest rates in the next 2 years if there is HPI will be blooming for them.

BiggaThanBen

dandy-candy wrote: »

A friend of mine says her parents who live in the Ukraine

It is "Ukraine", without "the" in front ...
http://en.wikipedia.org/wiki/Ukraine
http://www.thefreedictionary.com/Ukraine

Julu

Not clever enough to make much of a contribution - but for what it's worth - deflation for the next 1-2 years, then inflation into double digits for 5-8 years

Graham_Devon

Deflation for about 7 months (after the time it starts to deflate).

Then rampant inflation up to possibly a max of 20%.

Better add....IMHO.

Generali

No idea ad9898 I'm afraid. I can think of some likely outcomes.

Most likely for me:

RPI likely to go negative next month (fuel prices vs a year ago, little pricing power on the high Street, interest rates falling cutting the cost of servicing a mortgage).

After that? Well it's a brave man who predicts more than a day or two ahead right now! But what the hey, this is the interweb so I can always start posting using a different username if I make a fool of myself.

I reckon lowish deflation for quite a while - the credit system is in very real trouble and I think many people don't really understand the implications of that. Maybe the Government can bring themselves to print enough cash to cause inflation. It will just make the problem worse however as why would you lend money to someone if you think you're going to get back currency that is worth less than that which you lent?

My bet is deflation. If the UK has inflation of say double digits then the Gilt market will be closed effectively.

IMO of course.

StevieJ

Graham_Devon wrote: »

Deflation for about 7 months (after the time it starts to deflate).

Then rampant inflation up to possibly a max of 20%.

Better add....IMHO.

Did you say you expected the Ftse to go down to 2200, is this consistent with 20% inflation

nickmason

BiggaThanBen wrote: »

It is "Ukraine", without "the" in front ...
http://en.wikipedia.org/wiki/Ukraine
http://www.thefreedictionary.com/Ukraine

My parents still talk of "the Argentine".

Graham_Devon

StevieJ wrote: »

Did you say you expected the Ftse to go down to 2200, is this consistent with 20% inflation

No, its not consistent with 20% inflation, part of me thinks you know that.

But is is consistent with the first part I stated, part of me think syou know that.