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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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28 views

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 ...
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 ...
46 votes
11 answers
14k views

Is inflation a good or bad thing? Why do governments want some inflation?

Is inflation a good or bad thing? Why do governments want some inflation?
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,...
1 vote
2 answers
182 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 = (...
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 ...
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-...
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 ...
0 votes
2 answers
706 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 ...
0 votes
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 ...
0 votes
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 ...
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), ...
1 vote
2 answers
174 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,...
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0 answers
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 ...
3 votes
4 answers
632 views

Can a rent increase with RPI value be enforced retroactively?

In October 2016 we have rented a lovely house through an agency and , while negotiating , the landlord proposed that after one year the rent should increase with the RPI value. We accepted but with a ...
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 ...
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 ...
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?
1 vote
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: ...
1 vote
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 ...
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 ...
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 ...
2 votes
3 answers
509 views

Why are stocks good hedges against inflation?

So i was doing some research on inflation and i came across this sentence, "The impact of inflation on your portfolio depends on the type of securities you hold. If you invest only in stocks, worrying ...
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, ...
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). ...
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 ...
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 ...
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%...
1 vote
5 answers
773 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 ...
-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 ...
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 ...
1 vote
3 answers
225 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 ...
13 votes
10 answers
16k views

Should I stockpile nickels?

As the US dollar continues to be devauled the metal content value of US coins will eventually be worth more than the face value of the coins. There use to be silver in US coins but due to the ...
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 ...
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 ...
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:...
52 votes
10 answers
16k views

Are you preparing for a possible dollar (USD) collapse? (How?)

After the last crisis it was easy for many to look back and say all the signs were there to indicate an impending crisis. Super-low interest rates from the FED, no down-payment loans, interest-only ...
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 ...
17 votes
4 answers
942 views

What is the best way to invest in gold as a hedge against inflation without having to hold physical gold?

What is the best way to invest in gold as a hedge against inflation without having to hold physical gold? Is it possible for a regular person to just purchase shares in GLD?
12 votes
6 answers
2k views

Buying gold / silver as a hedge against hyperinflation

I'm becoming more interested in buying gold / silver coins as a hedge against inflation and especially hyperinflation. I know very little about this, and there are thousands of sites on the internet ...
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 ...
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 ...
8 votes
1 answer
430 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: ...
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 ...
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, ...
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 ...
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 ...
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 ...
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 ...
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. ...

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