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Debate House Prices
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Inflation
globalds
Posts: 9,431 Forumite
I have no links to post as this is just my gut feeling.
This is the first month I have worryingly felt the effects of inflation.
This could be down to the VAT increase and it is definitely felt when filling the car up.
I was just wondering if any one else had noticed anything?
Hopefully everyone will post that prices have dropped and it is just my own circumstances ...I am a mortgage payer and one of the biggest threat to continued low interest rates seems to be inflation running away, so this is a self interest post.
This is the first month I have worryingly felt the effects of inflation.
This could be down to the VAT increase and it is definitely felt when filling the car up.
I was just wondering if any one else had noticed anything?
Hopefully everyone will post that prices have dropped and it is just my own circumstances ...I am a mortgage payer and one of the biggest threat to continued low interest rates seems to be inflation running away, so this is a self interest post.
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Comments
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Jaffa cake prices have gone through the roof.0
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The inflation rate is 2.4% at the moment, they'll be another update in mid February.
It's in the government's own interests to encourage inflation, otherwise paying off the national debt would be impossible. The Bank of England is betting on it - they recently changed the structure of their pension scheme to 70% inflation linked gilts (government bonds are sensitive to changes in inflation).0 -
StiflersMom wrote: »As a mortgage payer, high inflation would benefit you as your overall debt will quickly fall away. Bring it on !!!
:T
It would if I wasn't using this low patch to overpay.
Also I think the reality of prices rising with wages tracking a long way behind does not fill me with cheer.0 -
StiflersMom wrote: »As a mortgage payer, high inflation would benefit you as your overall debt will quickly fall away. Bring it on !!!
:T
Wouldn't if wages don't rise.
With extra taxes, such as the increase in employer NI, wage rises are not guarenteed, especially at an inflationary rate.0 -
higher interest rates usually folow high inflation0
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Could be different in the new global economy. We sell our debt to foreigners, they try to balance risk and reward. How sustainable is the UK deficit? That's the interest rate story.markharding557 wrote: »higher interest rates usually folow high inflation
As for inflation - imports and low pound - again global factors come into play.
The link between wages, inflation, interest rates may be of less importance this time around. We could end up with static wages accompanied by tax increases, service cuts, inflation and higher interest rates.
Try watching Iceland, Ireland, Greece and the others try to deal with this problem. Not sure how much better the UK is.0 -
Yes, have noticed it, when doing weekly shop in the supermarket, and filling the car with petrol. Watch interest rates go up next - make overpayments on your mortage if you can. It is inevitable that mortage payments will go up, while savings rates lag behind0
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When is the price of household fuel coming down?
Ahhh
I forecast a drop in inflation in March/April...
Not Again0 -
1984ReturnsForReal wrote: »When is the price of household fuel coming down?
Ahhh
I forecast a drop in inflation in March/April...
Petrol "should" be coming down also. It is at a 3 month low, as last August really but was there 2p added in sept?0 -
House_owner wrote: »Yes, have noticed it, when doing weekly shop in the supermarket, and filling the car with petrol. Watch interest rates go up next - make overpayments on your mortage if you can. It is inevitable that mortage payments will go up, while savings rates lag behind
why make overpaments on your mortgage if you can earn more on it in a savings account?
Why lose the cash flow too... incase something mad happens, you can't then ask the mortgage company for it back?Plan
1) Get most competitive Lifetime Mortgage (Done)
2) Make healthy savings, spend wisely (Doing)
3) Ensure healthy pension fund - (Doing)
4) Ensure house is nice, suitable, safe, and located - (Done)
5) Keep everyone happy, healthy and entertained (Done, Doing, Going to do)0
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