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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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 ...
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3 answers
284 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 ...
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3 answers
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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 ...
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1 answer
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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 ...
1 vote
1 answer
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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 ...
0 votes
1 answer
61 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 ...
1 vote
2 answers
157 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 ...
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1 answer
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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 ...
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1 answer
98 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 ...
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Are there any trading products which track inflation?

Are there any derivative trading products that track inflation very well? I was thinking for example that there would be something like consumer price index derivatives. Or maybe derivatives for some ...
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1 answer
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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 ...
5 votes
2 answers
530 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:...
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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 ...
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10 answers
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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 ...
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1 answer
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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 ...
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1 answer
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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 ...
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4 votes
2 answers
209 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. ...
2 votes
2 answers
406 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, ...
4 votes
3 answers
468 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 ...
2 votes
2 answers
167 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 ...
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3 answers
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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 ...
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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 ...
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1 answer
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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 ...
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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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1 vote
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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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5 answers
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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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1 answer
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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
1 vote
2 answers
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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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1 answer
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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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4 answers
386 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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1 answer
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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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1 answer
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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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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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1 answer
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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 ...
2 votes
3 answers
188 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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1 vote
1 answer
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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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2 answers
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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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3 answers
407 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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2 answers
109 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 ...
0 votes
1 answer
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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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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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3 answers
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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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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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1 answer
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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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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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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 ...
1 vote
1 answer
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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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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 ...
2 votes
1 answer
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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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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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