For questions that relate to inflation, which is the general increase in the prices of goods and services over a period of time.

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14 views

Software computing internal rate of return and factoring inflation in [closed]

I'm looking for a software, ideally web app, that I could use to monitor my investments, mainly stocks, currencies and real estate. I'm able to find several apps that draw very nice graphs and are ...
1
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1answer
80 views

How to reach an apt going against inflation

I live in Argentina and I am 21 years old. One of my goals is to buy an apartment but the problem is the more money I have, the more money I am losing because of inflation. One of the options is to ...
4
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1answer
48 views

How do I calculate the modern-day value of pre-euro currencies (inflation correction)

I'm trying to calculate the modern value of 1950's Dutch guldens (guilders). Usually I'd use Wolfram Alpha for such a task, but it doesn't seem to understand pre-euro currencies. This works fine: ...
21
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5answers
3k views

What does inflation mean to me?

Everyone buys different kinds of goods. For example I don't smoke tobacco so I'm not affected by increased tobacco prices. I also don't have a car so I'm not affected by the reduced oil prices either. ...
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3answers
2k views

Least unsafe investment vehicle that meets or exceeds inflation?

Let's say I have an account with $30,000 set aside for long-term unemployment, medical emergency, etc. This account will most likely (and hopefully) remain unused for at least 5-10 years. I could ...
2
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2answers
34 views

Calculating an annual inflation rate from monthly data

Let's say I have the following inflation data (for 11 months): "2015-01" = 3.85 "2015-02" = 2.22 "2015-03" = 1.21 "2015-04" = 0.46 "2015-05" = 0.35 "2015-06" = 0.19 "2015-07" = 0.80 "2015-08" = 0.35 ...
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2answers
89 views

Why compare asset performance using returns, instead of using change factors?

Why do investors compare the returns of assets as opposed to the change factors of assets? E.g. comparing 6% / 4% instead of 106% / 104% to get the comparative performance of two assets. AFAIK ...
5
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1answer
133 views

Why adjust for inflation annually, as opposed to realising it after the holding period?

Why do investors offset their annual returns against inflation, when inflation isn't realised until the end of the holding period (when the investor is actually spending the money)? An example: ...
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3answers
94 views

Why do I not see goods and services all change their price when inflation is high? [closed]

It seems like they would lose money on their goods and services.
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2answers
62 views

Adjusting a value for inflation each month using rolling 12-monthly inflation figures

I have a figure that I want to adjust for inflation each month. I have monthly values for the UK Consumer Price Index but these are each for the change over the preceding 12 months. If my base value ...
3
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2answers
104 views

How does inflation rate affect debt payoff strategy?

When reading a comment by user Philipp on this answer, he states: [W]hen the debt is in a currency which has an average inflation rate larger than the interest [in this case 0%], you essentially ...
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1answer
41 views

Determining annual inflation rate from bimonthly cpi growth rate?

I've been unable to find a concrete answer to this question so I assume I am overlooking something incredibly simple. In order to determine the real interest rate, I am required to use the nominal ...
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4answers
2k views

What is inflation?

What do people mean when they say a price is Inflation adjusted ? Like a car costing $100 in 1990 would cost $400 today adjusted to inflation? If I buy a car at $100 today and inflation is 0.5%. ...
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0answers
40 views

What has been the inflation-adjusted rate of return from various asset classes in India?

I'm looking at equity, FDs, liquid funds, real estate. I'd like this information for various time periods, like 5, 10 and 20 years. I'd like both nominal and real returns. I've looked but couldn't ...
2
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1answer
84 views

Calculating the present day value of a future amount?

I'd like to know what my retirement's purchasing power is. I think the best way to do that is to adjust for inflation in reverse, maybe? I know to calculate your future salary with inflation you can ...
0
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1answer
220 views

Why does a high inflation strengthen a country's currency? [closed]

A low interest rate increases money supply, which leads to high inflation. Now, how does that high inflation automatically translate into strengthening of the country's currency? If anything, because ...
0
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1answer
105 views

calculation of real inflation rate in india?

How can I figure out the real rate of inflation in india? If I don't believe CPI as real and practical? We get the CPI numbers as inflation rate, but in my views those numbers are not the real one. I ...
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1answer
44 views

Always invest in a bond ETF with at least inflation protection?

I abbreviate: inflation-protected bonds = IPB (I choose this term because I don't want to limit this question to US TIPS); yield to maturity = YTM. Whenever deciding to invest in a bond ETF, should ...
8
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1answer
297 views

True cost of a mortgage when considering inflation

For the purposes of this question, let's assume the following: Inflation is and will be a steady 2% I am in the 30% tax bracket and there is a home mortgage interest deduction I have a 30-year fixed ...
0
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1answer
64 views

Demurrage vs inflation [closed]

Is demurrage and inflation the same? If both are at 1% a day and today I have $100, tomorrow: - Under demurrage I'll have $99 - Under inflation I'll have $100, but that $100 will be worth only 99 of ...
0
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1answer
45 views

How does agreed value insurance work with inflation?

In an agreed value insurance plan I understand that the number X is the amount that will be paid out upon loss. However I have two questions in regard to this: Upon renewing my policy yearly am I ...
2
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1answer
176 views

Inflation & Time value of money

Can anybody explain to me how exactly does inflation erodes away bank savings using the time value concept of money?
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2answers
194 views

How would you figure the cost of something in the future including inflation?

Looking for an excel formula that can calculate the cost of something based on a current price that factors in price increases and inflation. For example a plane ticket cost (econ LAX to JFK) in 30 ...
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1answer
48 views

How inflation in China makes real exchange rate between China and US to rise? [closed]

I am a bit puzzled about how the rising inflation in China as compared to that in US amkes the Chinese currency to appreciate as per the real exchange rate. I am confused because I read somewhere that ...
5
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2answers
659 views

What does inflation actually mean? [duplicate]

Inflation, in the ordinary sense, increase in the prices of goods and services. Some economists say inflation up to 5% is even desirable. Why is this so? When governments struggle to control ...
2
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2answers
470 views

Too low interest rate in New Zealand

I came from a country with high interest rates where you can easily find an investment that pays more than inflation, but I moved to New Zealand and was surprised when I saw that the inflation rate is ...
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1answer
113 views

Weightage of products used for measuring inflation

How does the government fix a particular weightage for a particular commodity which is to be used during measurement of inflation? Is there any specific scientific formula that is to be used?
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1answer
223 views

What is the future of 401k in terms of stability and reliability?

Let me quote: 7) Your Retirement Plan is For S**t. I don’t care how much you set aside for your 401k. It’s over. The whole myth of savings is gone. Inflation will carve out the bulk of your ...
2
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4answers
807 views

How to calculate cash loss over time?

For example, I got £100 few months ago and I didn't spend them - just kept them in my drawer at home. I understand that those £100 from few months ago is not worth same £100 but it is less today. How ...
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2answers
102 views

What numbers do I look at to adjust my salary increases for inflation?

I would like to compare my annual salary increases to some "real world purchasing power" metric to see if I am meeting, exceeding, or falling behind on how far my money goes each year. What number ...
0
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2answers
69 views

Does inflation equal more loans? [closed]

I am wondering if the banks are favored by high inflation levels? Do higher inflation levels equal more loans? I am looking for another way of looking at the problems of inflation and not just from a ...
3
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1answer
137 views

According to yahoo finance, Vanguard's Dividend Growth Fund does not appear to have dividend growth. Why is that?

Why does Vanguard's Dividend Growth Fund not show dividend growth according to yahoo finance's historical distribution data? In 1993, Vanguard's Dividend Growth Fund Investor shares (from here on out ...
2
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1answer
165 views

Making Sense Of This Sentence

Some random browsing brought me to the Wikipedia page on Financial Independence, and I'm having trouble making sense of something it says. Below is the whole extract, provided in full to make it easy ...
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4answers
511 views

Relation between inflation rates and interest rates

In Canada, as of the time of writing this question, the: Key interest rate is 1.00% (source) The inflation rate is 1.50% (source) In India, at the time of writing, the: Base interest rate is ...
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1answer
307 views

Is the Social Security delayed benefit increase in addition to COLA?

I understand that delaying taking social security from full retirement age (67, based on my birth year) until age 70 results in a 24% increase in the monthly benefit, or 8% per year. Is this amount ...
2
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1answer
120 views

What is the numerical relationship between an APY and an inflation rate?

I’m thinking of starting a CD ladder. The rates for CDs are expressed as an annual percentage yield (APY), while the inflation rate is expressed as a percentage per year. How do you convert between ...
3
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4answers
530 views

Is investing in housing considered an adequate hedge against inflation?

Does the price of a home or apartment generally increase, at least, with the rate of inflation in the United States? Could such a purchase be viewed as effective protection against inflation?
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1answer
137 views

Effect of inflation on stock market [closed]

What is the effect of inflation on stock market activity? Not the effect of inflation to the returns on a particular stock (some stocks may fare well in case of inflation, other stocks may fare badly ...
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2answers
126 views

Are there any other investing methods I should look into?

I'm looking into long-term investments. So far, I've looked at stocks, mutual funds, IRAs, and 401Ks. I'm 22 and recently begun my first full time job. I know the basics of these investments, ...
3
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2answers
404 views

Effect of Quantitative Easing on Price of Bonds

I don't seem to understand the effects of QE. Fed uses open market to purchase long-term government bonds which pushes up the demand for bonds and drives up the price of bonds. However, this ...
3
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2answers
100 views

What price index should I consider when saving?

I was wondering if instead of using some official index, I should calculate my own index, putting in the equation all my expenses and calculate how poorer or wealthier I get over the years. Real ...
2
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1answer
906 views

Inflation rates to expect over the next 30 years, 401k planning

I am a recent college grad and now a new hire looking to choose 401k options. I am wondering what the general strategy behind choosing a 401k investment rate is. I have been reading Recent graduate ...
3
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3answers
4k views

What effect would currency devaluation have on my investments?

I am curious what effect currency devaluation has on the value of my various investments/assets. For instance, I have retirement savings in mutual funds, growth stocks, and bonds. First, let's ...
6
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4answers
2k views

How should one account for inflation when planning retirement savings and withdrawals?

Let's say one had a goal of saving $x, in order to live off of (say) 4-5% interest on the principal. How do you then account for inflation? Do you assume some rate and increase how much you would ...
5
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1answer
227 views

What are good investments to use as hedges when the Federal Reserve draws down quantitative easing?

Basically I think it is quite obvious that quantitative easing (QE) will be pulled back eventually and countries will start to tighten their monetary policy. When that happens, what kind of assets ...
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3answers
3k views

“Inflation actually causes people not to spend”… could it be true? [closed]

Oasis Jnr claims that if inflation is high, consumers do not spend, because the high prices does not attract them: ...if inflation occurs then prices rise which will affect consumer spending ...
5
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1answer
1k views

What happened to the Google Price Index?

I've seen it before, but I can't find it anymore. I think I remember Google mentioning that it would only be available in graphical form, but not data form, and also that it would only show one year, ...
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2answers
504 views

Is there a fool-proof way to keep up with inflation? [duplicate]

I know I can keep cash in an interest-based bank account, but that type of investment will not keep up with inflation, it seems. Would I be right to assume that government/corporate bonds can keep up ...
5
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1answer
320 views

Equity prices during currency devaluation — Mexico 1994 [closed]

If I own a company whose assets are 100 barrels of oil valued at $10,000 in some currency, and the currency's value suddenly drops by a factor of two, I would expect that my company is now suddenly ...
2
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2answers
92 views

International bonds, currency differences, and effect of inflation on such bonds?

Country X's national government purchases country Y's government-issued bonds. Would the bonds be issued in country Y's currency? How does inflation (of either country's currency) factor into this, ...