When will we see higher rates of inflation?

makeorbrake

At the start of the bust, we were told by some commentators that over time, inflation would smooth out some of the damage (in terms of negative equity on property).

8 years on - and the inflation rate has been minuscule. Can anyone foresee a time when higher rates of inflation will return?

I have a Tiger era property in a sleepy regional town that's worth half of what I paid for it. It has not budged in terms of valuation over the past 8 years.

There's every possibility that I'll buy elsewhere. I don't like the idea of renting this existing house out (because of the fudging about that comes with all that). However, it doesn't sit well with me - walking away from a major loss. Furthermore, the small mortgage on it (I may have suffered a loss of 50% but relatively speaking, it was a cheap property) is probably the cheapest financing I'll ever see (ecb plus .5%) Therefore, I feel I'll probably have to hold on to it for another 15 years.


If higher inflation rates were to return at some stage, it might help...

Zenify

makeorbrake wrote: »

At the start of the bust, we were told by some commentators that over time, inflation would smooth out some of the damage (in terms of negative equity on property).

8 years on - and the inflation rate has been minuscule. Can anyone foresee a time when higher rates of inflation will return?

I have a Tiger era property in a sleepy regional town that's worth half of what I paid for it. It has not budged in terms of valuation over the past 8 years.

There's every possibility that I'll buy elsewhere. I don't like the idea of renting this existing house out (because of the fudging about that comes with all that). However, it doesn't sit well with me - walking away from a major loss. Furthermore, the small mortgage on it (I may have suffered a loss of 50% but relatively speaking, it was a cheap property) is probably the cheapest financing I'll ever see (ecb plus .5%) Therefore, I feel I'll probably have to hold on to it for another 15 years.


If higher inflation rates were to return at some stage, it might help...

Be careful for what you wish for. The ECB is waiting for higher inflation to increase interest rates.

Villa05

Zenify wrote:

Be careful for what you wish for. The ECB is waiting for higher inflation to increase interest rates.

I'd doubt that a high general inflation rate would do much for a house in an area where there is little demand and possible over supply

nuac

We have got used to practically nil inflation and low interest rates.

Increased interest rates and higher rates of inflation would cause problems to many

The Cuban

ECB rates or general cost of living?
Cost of living Inflation is already running around 8-10%, probably much higher by the year end, don't believe the spin that its low or negligible. You cant have the Euro and dollar printing presses running full steam ahead with the last 8 years and have inflation of only 2%. Just look at the hikes in Insurance, Electricity, Food, household commodities, timber and construction materials all have risen significantly

dxhound2005

The Cuban wrote: »

ECB rates or general cost of living?
Cost of living Inflation is already running around 8-10%, probably much higher by the year end, don't believe the spin that its low or negligible. You cant have the Euro and dollar printing presses running full steam ahead with the last 8 years and have inflation of only 2%. Just look at the hikes in Insurance, Electricity, Food, household commodities, timber and construction materials all have risen significantly

Food decreased by 2.2% in the 12 months to May 2017, according to the CSO. Where did you get your figures from?

http://www.cso.ie/en/releasesandpublications/er/cpi/consumerpriceindexmay2017/

Food & Non-Alcoholic Beverages (-2.2%)

robp

The Cuban wrote: »

ECB rates or general cost of living?
Cost of living Inflation is already running around 8-10%, probably much higher by the year end, don't believe the spin that its low or negligible. You cant have the Euro and dollar printing presses running full steam ahead with the last 8 years and have inflation of only 2%. Just look at the hikes in Insurance, Electricity, Food, household commodities, timber and construction materials all have risen significantly

A lot of food and drink comes from within the Eurozone though. Maybe the vast bulk?

The Cuban

dxhound2005 wrote: »

according to the CSO.

Enough said

makeorbrake

The Cuban wrote: »

Enough said

Understood. However, where do we then get reasonably accurate inflation figures from?

dxhound2005

The Cuban wrote: »

Enough said

Here's more. Butter went up by 7.2% so your source would be close on that one.

Table 4 COICOP Division 01 Food and Non-Alcoholic Beverages - May 2017
Description Weights Index Percentage changes
2017 Dec. 2016=100 1 month 12 months
01.1 Food 10.0067 99.8 0.4 -2.1
01.1.1 Bread & Cereals 1.7744 98.2 -1.0 -3.7
Rice 0.0743 98.2 -3.6 -9.0
Flours & other cereals 0.0378 102.7 5.7 -2.9
Bread 0.5637 99.6 -0.3 -0.4
Other bakery products 0.6029 96.3 -1.9 -3.6
Pizza & quiche 0.1125 100.5 1.1 -11.1
Pasta products & couscous 0.0868 100.3 -0.3 0.1
Breakfast cereals 0.2000 97.6 -2.5 -6.4
Other cereal products 0.0963 96.5 0.4 -6.9
01.1.2 Meat 2.5258 101.1 1.2 -0.6
Beef & veal 0.4042 106.6 4.2 -0.6
Pork 0.1440 105.4 1.6 1.8
Lamb & goat 0.1235 99.0 2.9 -1.4
Poultry 0.6023 99.5 0.2 -0.8
Edible offal 0.0047 99.7 0.0 -0.6
Dried, salted or smoked meat 0.4541 100.8 1.1 0.3
Other meat preparations 0.7932 99.2 -0.1 -1.3
01.1.3 Fish 0.3828 98.6 5.7 0.7
Fresh or chilled fish 0.1879 97.8 10.8 5.4
Frozen fish 0.0238 95.8 1.3 -8.2
Fresh or chilled seafood 0.0213 97.6 0.9 -2.9
Dried, smoked or salted fish & seafood 0.0361 102.0 1.9 2.4
Other preserved or processed fish & seafood-based preparations 0.1136 99.7 1.3 -0.8
01.1.4 Milk, cheese & eggs 1.3398 98.6 0.1 -3.0
Fresh whole milk 0.2942 100.3 0.3 -0.6
Fresh low fat milk 0.1738 100.1 0.0 -0.5
Yoghurt 0.2769 97.7 0.5 -5.4
Cheese & curd 0.3010 96.5 -1.5 -5.9
Other milk products 0.1220 98.9 2.1 -0.3
Eggs 0.1718 99.3 0.8 -2.8
01.1.5 Oils & fats 0.2798 103.9 0.7 2.3
Butter 0.1411 108.6 2.4 7.2
Margarine & other vegetable fats 0.0646 97.1 -1.9 -4.3
Olive oil 0.0279 98.0 -1.0 -4.1
Other edible oils 0.0463 102.8 0.1 0.2
01.1.6 Fruit 0.8570 100.0 0.3 0.5
Fresh or chilled fruit 0.7006 99.7 0.3 1.3
Dried fruit & nuts 0.1371 101.7 0.0 -4.9
Preserved fruit & fruit-based products 0.0193 99.2 2.1 0.3
01.1.7 Vegetables 1.6030 99.4 -0.1 -2.5
Fresh or chilled vegetables other than potatoes & other tubers 0.6875 101.2 1.0 -1.7
Frozen vegetables other than potatoes & other tubers 0.0422 99.1 1.7 -0.1
Dried vegetables, other preserved or processed vegetables 0.3069 98.1 -0.9 -4.2
Potatoes 0.3566 98.3 -0.2 -2.5
Crisps 0.1916 96.7 -3.6 -4.6
01.1.8 Sugar, jam, honey, chocolate & confectionery 0.8779 102.1 1.4 -3.8
Sugar 0.0385 100.4 -0.4 1.2
Jams, marmalades & honey 0.0898 100.6 -0.3 -2.6
Chocolate 0.4200 104.8 1.9 -5.3
Confectionery products 0.1652 100.5 4.3 -2.0
Edible ices & ice cream 0.1397 98.1 -1.4 -7.0
Artifical sugar substitutes 0.0247 99.4 0.3 -0.9
01.1.9 Food products n.e.c. 0.3662 97.9 -0.6 -3.3
Sauces & condiments 0.1631 95.7 -3.7 -5.0
Salt, spices & culinary herbs 0.0342 100.8 1.0 0.6
Baby food 0.0243 99.7 -0.2 -1.1
Ready-made meals 0.0666 102.1 6.7 -0.7
Other food products n.e.c. 0.0779 97.4 -0.7 -3.2
01.2 Non-alcoholic beverages 1.1297 101.1 1.0 -3.4
01.2.1 Coffee, tea & cocoa 0.2061 101.0 1.3 -0.5
Coffee 0.1071 104.2 4.7 -3.3
Tea 0.0901 97.9 -2.3 1.7
Cocoa & powdered chocolate 0.0089 94.8 -2.2 -14.4
01.2.2 Mineral waters, soft drinks, fruit & vegetable juices 0.9236 101.1 1.0 -4.0
Mineral or spring waters 0.2213 98.5 -0.5 -1.5
Soft drinks 0.3716 105.0 2.8 -3.6
Fruit & vegetable juices 0.3308 98.5 -0.2 -2.1
Total 11.1364 100.0 0.6 -2.2

Geuze

The Cuban wrote: »

ECB rates or general cost of living?
Cost of living Inflation is already running around 8-10%, probably much higher by the year end, don't believe the spin that its low or negligible. You cant have the Euro and dollar printing presses running full steam ahead with the last 8 years and have inflation of only 2%. Just look at the hikes in Insurance, Electricity, Food, household commodities, timber and construction materials all have risen significantly

My electricity rates are down over the last year.

Food prices also down.