Deflation or inflation? Vote now

Thrugelmir

inflation

StevieJ wrote: »

We already have a stronger £ than not so long ago

But still a long way from where they were at the height of the boom. I was forward buying the US $ at 2.11 at one point. Today we still only around the $1.50 level, a 29% fall.

We need foreign investors to buy Gilts to fund the budget deficit. Their investment will also depend upon their view of sterling in the longer term.

Mr_Matey

deflation

I voted deflation. My money is worth more today than this time last year as:
* House prices are falling
* Stores are discounting goods
* I have more bargaining power in stores and can negotiate further discounts
* Lowered rent
* Petrol prices have come down

Reasons I could've voted inflation:
* Increased utility bills
* Increase in grocery bills, but that's mostly because I go to Waitrose now instead of Tesco.
* Increase in tube fares
* £ fall makes holidays more expensive

House price falls outweigh all of the others combined, so deflation it is.

Dithering_Dad

Thrugelmir wrote: »

But still a long way from where they were at the height of the boom.

Everything is a long way from where they were during the boom!

Thrugelmir

inflation

Dithering_Dad wrote: »

Everything is a long way from where they were during the boom!

Thanks for the insight.

Dithering_Dad

Thrugelmir wrote: »

Thanks for the insight.

You're welcome

Other news: house prices are cheaper than they were a year ago.

Generali

inflation

Dithering_Dad wrote: »

Everything is a long way from where they were during the boom!

I moved 12,000 miles for a start!

chucky

Dithering_Dad wrote: »

You're welcome

Other news: house prices are cheaper than they were a year ago.

that would depend on your mortgage rate...

Dithering_Dad

chucky wrote: »

that would depend on your mortgage rate...

So true. Well, my mortgage is currently less than my rent was in a student house I shared with 3 other people, many years ago.

This HPC/recession is brilliant, it's really helping me in my double quest to become mortgage free and build up a £100k pension in 3 years. The low rates are allowing me to overpay my mortgage like never before and the pension is benefitting from low priced shares.

To be honest, I've never had it so good.

chucky

Dithering_Dad wrote: »

So true. Well, my mortgage is currently less than my rent was in a student house I shared with 3 other people, many years ago.

This HPC/recession is brilliant, it's really helping me in my double quest to become mortgage free and build up a £100k pension in 3 years. The low rates are allowing me to overpay my mortgage like never before and the pension is benefitting from low priced shares.

To be honest, I've never had it so good.

exactly right - if you were locked into a fixed rate, you'd probably be paying 4% or 5% more on your mortgage.

in turn this makes your total purchase price for your property much cheaper due to the lower interest repayments and increased capital being repayed early.

many people don't appreciate it or even understand this unfortunately.