Questions tagged [inflation]

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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3answers
281 views

Who’s losing money when debt becomes easier to payoff thanks to inflation?

The Consumer Price Index in the US in May jumped up by 0.6%. Overall it’s possible that prices on goods (aka inflation) will increase by 10% in 2021. Now, assuming that salaries follow trend as well ...
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61 views

When inflation occurs, why do bonds no longer get cheaper as they sell off? [closed]

I thought that inflation drove down bond prices in general, but I read in "The Invisible Hands" by Steven Drobny that it is only when inflation rises that government financing becomes a ...
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5answers
4k views

What’s the difference between inflation and inflation tax?

I get that people seem to be using the term inflation tax as a metaphor for understanding inflation, but it seems to be a bit more than that. We all know that inflation reduces the buying power of our ...
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1answer
53 views

What are the pros and cons of Inflation Protected funds vs Intermediate Government Securities funds?

For example: PRRIX - https://www.morningstar.com/funds/xnas/prrix/quote Inflation Protected SGVIX - https://www.morningstar.com/funds/xnas/sgvix/quote Intermediate Government
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2answers
113 views

0% rate of return + inflation differs from inflation alone

Given that Real Rate of Return = (1 + nominal rate) / (1 + inflation rate) -1 If my nominal rate equals the inflation rate I get 0, meaning that my money is worth the same no matter the inflation ...
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1answer
33 views

Calculating real rate after taxation - is there a better way?

First I need a sanity check for my calculations. Say I have this scenario: Nominal Rate (per year) [r] 13% Inflation Rate (per year) [i] 5% Initial investment [x] $ 100.00 Time (years) [t] 10 Tax ...
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4answers
274 views

Hyperinflation effects on mortgages [closed]

Is it conceivable that some kind of monetary reform would be carried out in western countries (or Europe, or Switzerland if that matters), in which assets and debts (mortgages) would be converted ...
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1answer
40 views

Why does the price of a TIPS bond not match the inflation adjusted principal near or at maturity?

As stated by the US Treasury: With a rise in the index, or inflation, the principal increases. With a fall in the index, or deflation, the principal decreases. I'm curious why a TIPS (912828QV5) ...
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1answer
45 views

What is the inflation rate based on the current CPI? [closed]

In April, the Consumer Price Index reached a record high of 4.2%. My questions are: Is this 4.2%, the inflation in the US now? Where can I find the inflation rate since 2005?
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34 views

USD to GBP conversions through trading app - will I lose money through conversions

I am currently using an investments broker app to make trades/investments in to the stock market and crypto currencies. The broker app deals in USD currency which is converted from GBP when I deposit. ...
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1answer
191 views

If the loan interest is lower than inflation rate, does it mean it would be less expensive to take a loan and spend now, than save to buy later?

I am considering to buy an upright piano. For that, I have been planning the budget I would need and how much I would have to spend/save to be able to buy it . A few things to consider: The piano ...
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1answer
136 views

Are there good ways to hedge against a combination of high inflation & rising rates?

I have saved some money that I would like to use in the next 1-3 years to start a company. In the meantime I would like to make sure that inflation does not eat up into my accumulated capital. I am ...
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3answers
166 views

How to distinguish between appreciation and inflation?

Is there a way to differentiate between the appreciation of an asset and the devaluation of the currency it is denominated in (inflation)? I know I could look at conventional inflation measures (like ...
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1answer
63 views

What is Wholesale Price Index and why is it so important?

Why is wholesale price index so important for us? How does it impact and what role does supply chain have to do with it?
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2answers
51 views

How home prices behaves during and after great inflation 1970s in USA

Is there any chart/data or research on average home prices during 1970s in USA in big cities (NY, LA etc.). I'm particularly interested in average price per square meter between 1970 to 1985.
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3answers
209 views

How does hyperinflation impact home prices? [closed]

I found on investopedia how inflation will affect companies profits and standard of living: high inflation can also impact corporate profits [...] reducing the standard of living of individuals, ...
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0answers
54 views

What's the value of zero interest installments under high inflation?

Context: high inflation country. Let's say 3% montly inflation. A shop offers goods in monthly payments with 0% interest. For example you buy an applliance worth $100 in 12 montly payments of $8.33 ...
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2answers
105 views

Can I buy some US treasury bills or notes ETFs (3 month to 5 years) with very low risk from the EU?

Can I buy some US treasury bills or notes ETFs (3 month to 5 years) with very low risk from EU (want to buy it in EUR so I don't have to convert it - would this even be a problem?). Because EU bond ...
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1answer
60 views

What is the relation between inflation on a country and the exchange rate of its currency?

In the interval between 2010 and 2011, American inflation was 3.2% and Chinese inflation was 5.55%. During this year, the pair CNY/USD went from 6.2524 to 6.5758. If an investor would have invested 1,...
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0answers
25 views

Future value with contributions NOT increased for inflation

Let's say one starts with a portfolio balance of $1,000 and wants to contribute an additional $100/year. Future returns are assumed to be 5%/year. Future inflation is assumed to be 2%/year. If he ...
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1answer
76 views

Is a bunch of debt now better than distributed debt in the future in terms of paying less in the long run?

This might be too theoretical but it popped into my head this concept for attending University/College. If you had the ability to choose one of the following which is best in terms of you paying ...
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3answers
88 views

Which of Stocks, Bonds, Real Estate, Bitcoin, Gold, are not subject to devaluation of money?

Currency in circulation from year 2000 to 2020 appeared to have increased 3x. And a cappuccino in California went from $1.75 to $4.40, a beef noodle from $3.50 to $11, and a house from $600k to $1.5 ...
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1answer
79 views

Why are the SIPC and FDIC limits not increasing with inflation?

Social Security benefits increase with Inflation. So I am wondering what prevents law makers from making FDIC and SIPC limits increase with inflation as well?
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1answer
510 views

If TIPS yields are negative, why do TIPS ETFs have a positive yield?

I've heard that TIPs currently have a negative yield. But the VTIP ETF from Vanguard has a positive yield of about 1.2% right now. Why is that?
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1answer
287 views

How to protect your money from a hyperinflation? [duplicate]

Let’s say someone supposedly fears a hyperinflation and hence the devaluation of money (or historically speaking the implementation of a new currency, e.g. post-war Germany). This extreme inflation is ...
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1answer
46 views

How to calculate monthly inflation from CPI

I have data that consists of dates and monthly CPI belong to that date. And I'm trying to find Inflation belongs to specific date, for instance inflation at 2015-02. I used this formula to calculate ...
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1answer
45 views

How do I factor currency devaluation when comparing the prices of houses in two countries?

I am thinking of buying property in Colombia and i'm trying to figure out if (or how bad) currency devaluation will affect it's value in the future. I have historical indices for the value of houses ...
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1answer
244 views

How to save money while protecting it from inflation for a home?

Last time I heard from my friend that M1 money supply year increase in my country is about 35% and economy is frozen (I don't known is it true, but let assume that it is true in some country X). If I ...
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1answer
82 views

Earning from stock market and inflation calculation understanding

Please, help me with earning and inflation understanding. I have invested in SEB Strategy Defensive stock in beginning of year 2016. At this time unit price was 112. Now unit price is 115. I suppose I ...
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0answers
54 views

How to account for time-value of money in a total cost of ownership calculation?

I am attempting to conduct a total cost of ownership (TCO) analysis for purchasing a vehicle, to compare the TCO between an electric vehicle and a conventional gasoline car. I would like this ...
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1answer
159 views

Can the U.S print infinite money? [closed]

I know that a country can't simply print money to pay debt, since it would only lower the value of the money, i. e. cause inflation. But what about the U.S? Since their new printed money is very ...
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3answers
131 views

Does inflation directly increase stock prices?

Let's say there's a company in a normal, rational market with X outstanding shares valued at $100 per share in 2021. A year from then, there has been no news about the company, no changes in revenue ...
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2answers
605 views

What is the safest asset to hold if you think a longterm depression is coming?

I'm obviously not a financial advisor, nor do I have a crystal ball. But the more I read/think about the global macro-level outlook the more I believe a long and deep correction is coming. Anyone with ...
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3answers
2k views

Inflation and the current value of my dollar

I am trying to figure out the value of my $100 with a hypothetical 2% constant inflation rate after 30 years. Here is the scenario: suppose I have $100 laying under my bed and the hypothetical ...
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1answer
32 views

Term Life Insurance premium vs Interest/Inflation rate

I am thinking of buying a term insurance plan for myself in India and am 28 years old. My premium per year to be paid for a period of 10 years and coverage till 99 years works out to be 111,213 INR. ...
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1answer
41 views

Are the EPS values on the Growth, Profitability and Financial Rations on MartketWatch Adjusted for Inflation

Take this page: http://financials.morningstar.com/ratios/r.html?t=GM&region=usa&culture=en-US Here we see a table showing financials for GM. For the row called "Earnings Per Share USD" are ...
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1answer
104 views

Sell or keep property just purchased

I bought a house with 2 units in Switzerland recently for $750k mainly for rental income and long term security. The house returns $29,000/annum brutto rental and after deducting interest, ...
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1answer
173 views

Shall we expect high inflation when government provides financial aid during covid-19?

I am not clear about the source of money when UK and US announced the COVID-19 financial help. For example, in the UK an employee may be eligible for 80% of the wage, capped at £2500, given their job ...
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2answers
67 views

Calculate hypothetical stock value in n years at todays' dollars? [closed]

I'm new to investing. If I buy hypothetical stock that meets this criterion: 100 shares at $100 per share Shares increase in value by 10% per year Inflation is 2% per year In today's dollars, what ...
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3answers
2k views

How much weaker would the US dollar be if each citizen receives a $1000 bonus from the government? [closed]

Currently there are talks of issuing a $1000 payout to all American citizens earning less than $130,000. Presuming the final number of recepients is 200 million people, this is equivalent to injecting ...
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2answers
87 views

Hedging currency in anticipation of relocating

I live in the US, so I use USD for daily activity, but I plan to move to the EU in <5 years and live there long term. My portfolio is currently denominated in 80% USD and 20% other, but I don't ...
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2answers
248 views

S&P 500 only returns 1.26% (after UK inflation)… am I wrong?

I invest in the S&P 500 from the UK. I am trying to calculate what my investment pot will be in 25 years, adjusting for inflation. Unfortunately, my calculations point me towards an abysmal ...
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1answer
3k views

How much do I need to invest monthly to accumulate a given amount?

I have a target amount T USD (in today's value, before inflation) that I would like to accumulate over N years. Every month I invest X USD with an expected return of Y%. Expected inflation is Z% per ...
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3answers
305 views

Estimating nest egg and inflation

First a couple paragraphs for me to lay out my understanding and then my actual question. It is often reported that one can estimate how much they need for retirement by taking their current expenses ...
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2answers
301 views

Why is there more attention on the S&P 500 than on the S&P 500, inflation adjusted, with dividends?

Dividends, like increased stock price, are just another equivalent way for shareholders to gain value (with some tax differences). Many investors reinvest the dividends and so never "see" them. Of ...
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2answers
214 views

If I'm 25 and work 10 years to cover the 40 credits required to qualify for Social Security, will my payments be indexed to inflation when I retire?

If I'm 25 and work for the next 10 years to cover the 40 credits required to qualify for Social Security, will my payments be indexed to inflation when I retire?
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355 views

Is gold inflation-proof or not?

I feel a bit confused. I read something on this site about gold being inflation-proof. Other people stated that it is untrue. I feel confused why. You can print money, but you can not print gold, ...
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5answers
1k views

What should one do to not lose the value of his money over time

I live in Europe with my parents. I work and I have around 18k € (US$ 20k) in my bank account. I know that money loses its value over time and I wonder what I can do with that money and my income ...
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2answers
141 views

How exactly does redenomination work?

basically I was having a history lesson in school and we were learning about inflation and how countries employed redenomination to save their suffering economies. I don't really understand how simply ...
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1answer
122 views

How to calculate inter-annual variation of inflation for a 3 month period

I have the monthly indexes taken from the National Institute of Statistics of my country (below), then I can calculate its inter-annual variation easily: ((index month year - index same month year - ...

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