savings V inflation

Stompa

opinions4u wrote: »

The weird stuff I buy that hasn't stayed the same price recently includes things like bread, milk, eggs, petrol, lunch in the work canteen, a cup of tea at work.

FWIW I'm still paying the same price for milk & eggs as I was a year ago, and bread is cheaper. I doubt it'll last though!

opinions4u

Stompa wrote: »

FWIW I'm still paying the same price for milk & eggs as I was a year ago, and bread is cheaper. I doubt it'll last though!

lol ... the milk has certainly gone up in Tesco. The eggs which were £2.50 for 15 free range are now £2.79 and the classic Warburton's toastie loaf was £1.39 last week, having been £1.29 a year ago.

Perhaps I need to review brand and supermarket .

Rollinghome

Forum_User wrote: »

It depends what kind of stuff you buy. Yeah, if you're buying loads of weird stuff, it may cost more. Normal things stay the same price. So it isn't really that relevant.

Sounds like you're living somewhere that's good to buy petrol and diesel. It seems to have gone up a bit where I live.

Stompa

opinions4u wrote: »

Perhaps I need to review brand and supermarket .

Yes, get yourself down to Aldi!

StephenM_2

CrashJPMorgan wrote: »

StevieJ,
I did not understand your post. If inflation leads to higher interest rates, if you paid more of your mortgage off now you'd be better off in future.

I've got a tracker mortgage, slightly more expensive than StevieJ at Base Rate + 0.99%. If I wanted to I could easily pay the mortgage off, but I choose not to because I can get twice as much interest on my savings as I pay on the mortgage. If and when the mortgage rate goes up relative to the savings rate then I'll re-consider, but until then I'm better off just making the standard contractual mortgage repayments.

lisyloo

Me too. BOE+0.49%.
I have have a giant six figure "stooze" going on with a balanced portfolio acheiving between 3% and 12%.
Like Stephen M I will review, but it's got some legs left yet.

You have to adapt your finances to suit.
A lot of people with money in the bank should consider a more balanced portfolio.
I'm not saying everyone can take huge risks and I have some money in cash myself. But most people can take a balanced approach e.g. some case, some stock & shares, some bonds, some gold etc.

StephenM_2

Mine's fairly well balanced too, in fact. I could just about pay off the mortgage with the money in my cash ISA, but there's also a similar amount in stocks and shares ISAs, which is fairly well balanced in terms of asset classes. There's also my employee share scheme, but I try to sell the shares in that regularly so as not to have too much relying on my employer (they've also got my final salary pension).

Forum_User_2

You're going to weird shops then. Most basic commodities have not gone up in most normal shops for years. At least not by the inflation rates, not even close.

Normal stuff doesn't go up by inflation. Ergo, inflation is not real. Its just a myth really.

Some shops (the ones to avoid!) may put their prices up because they know people will buy into that myth. But normal shops/businesses don't.

Just avoid your weird places/things, you will realise the truth.

Ilya_Ilyich

You know how the RPI/CPI are calculated, right? They specifically measure price increases for a selection of widely-purchased goods; the government doesn't just pluck a number out of the air and say "the inflation level is now X".

Sceptic001

Maybe Forum User should tell us where he/she buys his/her "normal" stuff, starting with gas, electricity and petrol. Otherwise a sceptic may be inclined to wonder if Forum User is a troll.