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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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How to evaluate the net profit rate for a pension scheme?

I am not a finance (cse background) guy but have some basic minimal knowledge about the inflation rate & interest rate of a country, and the net profit rate for an investment. As far as I ...
Nafiul Alam Fuji's user avatar
1 vote
2 answers
59 views

Inflation-adjusted value of ACWI or similar indices?

When looking at charts for an ETF (say an ETF tracking ACWI), then in order to understand how a share in the ETF is priced relative to a few years ago, should I factor in inflation as I would for ...
mxk's user avatar
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1 vote
1 answer
124 views

How can TIPS have negative real yields?

In this Investopedia explainer about TIPS, it says: The yields on TIPS are often negative. This is because after taking into account the effects of inflation, the real yield is negative. For instance,...
SuperElectric's user avatar
1 vote
1 answer
112 views

Why do US Social Security benefit estimate increases vary so much from year to year?

Although not yet old enough to receive US Social Security benefits I do look at the SSA statements each year. In each statement they provide an estimate of how much I will receive if I choose to start ...
rlandster's user avatar
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2 answers
183 views

How to combine compound interest formula with inflation?

Given a compound interest formula for an investment of FV = PV(1 + r/n)^nt, with a different APR for each year and a timeline of 2.5 years, how could this be combined with an inflation formula of R = (...
user125687's user avatar
2 votes
2 answers
111 views

Money-Weighted Returns calculation clarification

I found out this is the calculation for the Money-Weighted Returns. From what I understand, PVO can also be seen as "Present Value of the portfolio". If this is the case, doesn't the right-...
Wenuka's user avatar
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2 answers
711 views

How do I convert an annual inflation rate into a monthly rate? - More data version

I know there was already some similar question, so far I didn't find satisfying answer. I try to calculate EU zone month-to-month inflation based on figures from EuroStat. They provide monthly ...
Filip's user avatar
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1 answer
110 views

Inflation over time on US Stock investment

I would like to understand a few things about inflation. Let's suppose I change my currency from EUR to USD, for example, 10k EUR to USD. Now I invest it in the US Stock market. Let's do an example in ...
DevLeo's user avatar
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1 answer
108 views

What is causing the Argentinian inflation? [closed]

What is causing the high rate of inflation which has been going on in Argentina for the past five years and appears to be getting worse? I've read the country took out loans that they can not pay ...
Andrew X's user avatar
2 votes
1 answer
131 views

If you make a certain amount of money, is inflation less of a factor when seeking a raise

My background: I'm 32 Live in California (US) I make $25/hr I'm married (spouse brings in income as well) At my current job I have usually received good raises percentage wise (~8-10% each time), ...
Josh Drentlaw's user avatar
1 vote
2 answers
175 views

What kinds of investments are available in Canada to offset inflation impact?

I would sincerely appreciate your advice on the following topic: what kinds of investments are available in Canada to offset (at least, partially!) the impact of inflation? I am not a financial expert,...
user136555's user avatar
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127 views

How to calculate monthly CPI on a private loan over a couple of years?

I have borrowed money from a family member, and I have been keeping track of exactly how much I owe them down to fractions of cents. The amount owed has been steadily growing by a couple of hundred ...
flashy_thingy's user avatar
0 votes
3 answers
440 views

Is it correct to think: when the government prints money and I buy 3 houses, then when the price of house doubles, I get 1.5 houses for free?

It actually happened in a similar fashion in the US: in 2015, the price of a townhouse nearby was $850k. Then about 1 year later, the price of it went to $1.5 million. For simplicity's sake, let's say ...
Stefanie Gauss's user avatar
3 votes
1 answer
152 views

Do retail interest rates outpace inflation historically in the US?

Historically (say over the last 70 years), have interest rates (available to retail customers) beat inflation in the US?
Bananach's user avatar
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1 answer
571 views

Rough and ready value for cash offer on a house?

I am thinking about making a cash offer for a house, below the current asking price. I would like to make (at least) a rough calculation of a sensible offer amount. First what I have read already: ...
311411's user avatar
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0 answers
70 views

What is the best way to manage my savings and possibly increase my cash flow despite inflation in Egypt?

With the very quickly rising prices in Egypt, What is the best way to manage my savings and possibly increase my cash flow? I’ve also got some ideas, Are they good or not? Ideas that I have: Work as ...
Ahmed Eissa's user avatar
5 votes
2 answers
1k views

Why is there a discrepancy between current inflation rate and I bond rate in the US?

According to https://www.rateinflation.com/inflation-rate/usa-inflation-rate/, the November 2022 inflation rate is 7.11%, but the I Bond rate according to Treasury Direct is 6.89% (from November 2022 ...
HelloDarkWorld's user avatar
7 votes
6 answers
1k views

safe investment for maintaining purchasing power

I have $100,000. I am going to need the money over the next year. I want to protect its purchasing power relative to inflation and also have some reasonable low risk return. What would be a good ...
JJJ's user avatar
  • 79
14 votes
1 answer
6k views

How inflation really works?

I have a simple question about inflation, what an inflation rate of 10% in 2022 means if in 2021 it was 5% (for example) and 5% in 2020? Let’s say my salary is $1000 since 2020 and it didn’t change, ...
Will's user avatar
  • 159
5 votes
4 answers
2k views

Help me calculate if this money is safe against the inflation

My friend invested in a 10 year insurance-investment plan where he pays a yearly premium of 30,000 for 5 years and keeps the money for another 5 years (He cannot withdraw the money for this period). ...
7_R3X's user avatar
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2 votes
0 answers
46 views

Does the yield spread between inflation-indexed bonds and regular bonds overestimate inflation expectations?

Inflation expectations can be determined from the yield spread between inflation-indexed bonds and non-inflation-indexed bonds. For example, US inflation expectations for the next 5 years can be ...
Flux's user avatar
  • 17.1k
7 votes
1 answer
774 views

Is the US market really expecting less than 3% yearly inflation over the next 5 years?

Several people in my family are fearful of upcoming high inflation, perhaps due to the relatively high US inflation figures reported in the last few months (8%+). They think that the US inflation rate ...
Flux's user avatar
  • 17.1k
2 votes
2 answers
122 views

If deposit rate at banks > mortgage rate, does it always make sense to take a mortgage loan and not to pay in cash for house?

If deposit rate at banks > mortgage rate, does it always make sense to take a mortgage loan and not to pay in cash for house? It sounds simple but true. If mortgage rate is 5% and deposit rate is 7%...
user243557's user avatar
1 vote
2 answers
137 views

REITs vs I Bonds For Diversifying Beginner Portfolio Against Inflation

In the Intelligent Investor, Benjamin Graham recommends diversifying one's portfolio by hedging against inflation. In the book, he mentions REITs/real estate investments and investing in gold. I read ...
Cozy's user avatar
  • 13
1 vote
5 answers
782 views

What’s the real benefit of taking loan when interest rate is lower than inflation

This question is particularly regarding taking out a loan for a specific purpose, let’s say buying a car. I understand that when taking out a loan when inflation is high and interest rates are low you ...
Chris's user avatar
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-1 votes
1 answer
125 views

Difference between inflation and devaluation of euro?

Scope To limit the scope of this question, it focuses on the Euro only. Assumptions I assume there is a difference between the devaluation of the Euro, and inflation. This assumption is based on the ...
a.t.'s user avatar
  • 93
0 votes
3 answers
313 views

A change in trend towards end 2022? Don't invest money in the stock market anymore, but leave it in a savings account? [closed]

Many in this community and other forums recommend S&P500 and some other index funds. After the index fund fell sharply, I also thought now is the opportunity to enter. But now I read in the news ...
Sybil's user avatar
  • 692
1 vote
3 answers
227 views

How does inflation affect options prices?

Does inflation have any effect on options prices? If inflation increases, what will happen to the prices of puts and calls? My guess is that higher inflation will lead to higher interest rates, and ...
Flux's user avatar
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0 votes
1 answer
105 views

Mortgage ETFs going down while inflation is going up?

So I'm looking at these popular mortgage ETFs, MORT and BKLN, and they have been going down over the past year, while inflation has been going up. Any idea as to why? Real estate is often regarded as ...
nijshar28's user avatar
1 vote
1 answer
381 views

Is my plan viable for dealing with inflation?

Question about inflation and my idea about how to handle it. Electrical Engineer here,so please bear with me if I use non economics terminology. So as we see the prices are going up for everything. I ...
Mars Sojourner's user avatar
1 vote
2 answers
118 views

Market risk for TIPs vs. I Bonds

Treasury Direct has a good comparison between TIPs and I Bonds: https://www.treasurydirect.gov/indiv/products/prod_tipsvsibonds.htm However, I want to make sure I understand when you can lose ...
public wireless's user avatar
1 vote
2 answers
200 views

Are inflation protected bond funds a hedge against rate hikes?

Generally speaking, I'm a buy and hold index fund investor, with a long-term time horizon (20+ years). I currently keep ~12% of my account in intermediate-term bond funds. I don't usually make big ...
MikeyC's user avatar
  • 232
0 votes
1 answer
252 views

Can a non-Turk borrow Turkish lira?

Turkey is currently on the cusp of a hyperinflation apparently triggered by its president's policy of maintaining nominal interest rates far below inflation. Thus Turkish banks are currently giving ...
Kevin Carlson's user avatar
1 vote
1 answer
111 views

Inflation vs Mortgage - Updated for Inflation

I don't see an exact match to this question although I previously asked when things were calmer. The press is quoting a real YoY inflation rate of 7%. Let's assume there is a mortgage at 4% and a ...
NJL's user avatar
  • 57
0 votes
1 answer
172 views

Does inflation erode stock earnings or are stocks a good inflation hedge? - Intelligent Investor Book Question

I've come across this in the beginning of the book "The Intelligent Investor", by Benjamin Graham: How well did Graham’s forecast pan out? At first blush, it seems, very well: From the ...
user5646514's user avatar
6 votes
2 answers
2k views

How do you factor in inflation when calculating internal rate of return on an investment?

Say you invest $1000 into a venture on day 1. Then you invest another $1000 on day 365. Then, on day 730, its market value is worth $4000. If I were to put these numbers into an Excel spreadsheet like:...
Cerin's user avatar
  • 233
3 votes
2 answers
272 views

Is there no tax free way to shelter your savings from depreciation due to inflation like converting to any other unaffected foreign currency?

As I understand it, currency appreciation is treated as taxable income. However, if the currency you've converted to or any other currency you convert to isn't really appreciating at all and instead ...
johntrepreneur's user avatar
13 votes
10 answers
6k views

If stocks are products, and inflation makes the price of products go up, then why don't stocks benefit from inflation?

Inflation makes my money worth less, but stocks aren't money: They're a product that's worth money. If inflation makes prices rise, then does it follow that inflation will also increase the value of ...
J. Mini's user avatar
  • 607
1 vote
1 answer
98 views

Inflation Protected Bonds, How to find an index of them?

I came across TIPS in Graham’s security analysis book. I attempted to find them on DEGIRO but and found indices of such: iShares $ TIPS UCITS ETF EUR Hedged (Acc) Q1: How do you decipher that? Q2. Is ...
oliverfrost's user avatar
0 votes
1 answer
164 views

Is the Gold precious metal undervalued (towards the end of 2021)? [closed]

At the moment, money is being printed on a massive scale. The money is flowing into the stock markets and the younger generation is investing it in Crypto. Am I correct in assuming that Gold is ...
Sybil's user avatar
  • 692
4 votes
2 answers
234 views

How do I use my spare money? (Brazil)

I am writing this question because I want to know what are the best options for using my spare money. Hence, let me first describe my situation: Who am I? I am a 24 years old no child single male. ...
Matheus Diógenes Andrade's user avatar
2 votes
2 answers
491 views

When the government starts to print money, buy a house to double or triple your money?

It seems it is so obvious, but is it true? When the government starts to do "quantitative easing" or print money, then the price of a house can go from $1.2 million to $1.5 million easily, ...
Stefanie Gauss's user avatar
4 votes
3 answers
498 views

How do you live or survive in an area with hyper-inflation?

I live in a place where the cost of products and services are rising rapidly and exponentially while people's earnings are almost the same with only minimal changes. For example, you need to work for ...
Nariman Asgharian's user avatar
2 votes
2 answers
541 views

Do stock price charts need to be adjusted for inflation? [duplicate]

If I am looking at a multi-year price chart of a stock, do I need to adjust the prices for inflation? In the presence of inflation, the recent prices are more comparable to the current price than the ...
Flux's user avatar
  • 17.1k
0 votes
3 answers
157 views

Mid risk inflation hedge for parents retirement with 10/15% of total?

My parents are very conservative and uneducated about money, and they’re keeping most of what will be their retirement (in 3/4 years) in CD. I convinced them this is detrimental due to inflation, but ...
Luis's user avatar
  • 195
-1 votes
3 answers
402 views

Why sell stocks when inflation is high?

It doesn’t make much sense to me why the stock market (sometimes, today isn’t really an example) does more poorly when inflation is high. If CPI was high, I would think you’d want your $$$ invested in ...
Cotton Headed Ninnymuggins's user avatar
0 votes
1 answer
826 views

What is the formula to use to calculate future value of certain money on a certain month from today?

I have an excel sheet like below - In one cell (B1), I would mention the principal value, PV (for which I want to know future value at different point of time). And inflation rate, r, in another cell ...
Darshan L's user avatar
  • 143
1 vote
3 answers
352 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 ...
JonathanReez's user avatar
  • 5,862
1 vote
0 answers
64 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 ...
Sean Taylor's user avatar
10 votes
5 answers
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 ...
Cybernetic's user avatar

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