Inflation hitting a 25yr old record | Predictions for the future

[Ultegra134]

The increasing inflation is currently soaring across the globe, leading to excessive price increases in most goods, in fuel and energy. To make matters worse fuel and energy costs are not included in inflation's index, thus, a 5-6 or 7% increase, is actually a lot worse than anticipated.

In particular, Greece is now facing a 6.2% rise in inflation, compared to January 2021, the largest ever recorded since 1997, compared to 5.1% in December. Increases are now spreading across the spectrum of the economy and not just energy, as it was a while ago, thus reducing disposable income and reducing inflation not to an economic issue but to a wider social issue.

According to ELSTAT data, the goods with the largest increase compared to January 2021 are:

Natural gas with an increase of 154.8%
Heating Oil with an increase of 36%,
Electricity with 56.7%,
Fuels with 21.6%,
Lamb and goat with 17.6%,
Olive oil with 15.4% and
potatoes with 12.3%.
Fresh vegetables 14.4%
 
The situation is about to get worse, with depressing predictions of it surpassing 7%-8% in the upcoming March. How are we dealing with such a situation? It feels like a battle against an invisible enemy. Our available income is shrinking, what is the best way to tackle inflation? The most common answer I've seen is to invest, rather than save, but how exactly do you invest? Since when is buying cryptocurrencies, such as Bitcoin, tackling inflation, since it can also face periods that it's losing value.

Is it going to get any better, and how soon is that going to be, if prices ever recover. Personally, I highly doubt it that the situation is going to get any better within 2022.

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[Sterbens]

The situation is about to get worse, with depressing predictions of it surpassing 7%-8% in the upcoming March. How are we dealing with such a situation? It feels like a battle against an invisible enemy. Our available income is shrinking, what is the best way to tackle inflation? The most common answer I've seen is to invest, rather than save, but how exactly do you invest? Since when is buying cryptocurrencies, such as Bitcoin, tackling inflation, since it can also face periods that it's losing value.

Is it going to get any better, and how soon is that going to be, if prices ever recover. Personally, I highly doubt it that the situation is going to get any better within 2022.

No one knows for sure whether this year will be the start of a year of even bigger inflation in the future or not. Due to the fact that no one is really 100% safe from inflation.

Period of loss of value? how much does it cost to lose value in Bitcoin instead of paper money? even that would be quite difficult to recover by the banknotes themselves. about where are we going to save the economy if everything really experiences inflation evenly?
Pay attention to the economic situation where you live first, and don't rely too much on the inflation of a country that is not where you live. Methods of anticipating or minimizing it will vary.

[stompix]

The situation is about to get worse, with depressing predictions of it surpassing 7%-8% in the upcoming March. How are we dealing with such a situation? It feels like a battle against an invisible enemy.

Not totally invisible, from the Acropolis just look a bit to the left from the direction of Istambul with a really good pair of binoculars about, 3000km away! 
Just like in my case here and almost everywhere in Europe inflation is triggered by energy prices, look at Japan, finally getting 1%, Australia is at 3% just like Vietnam. If you haven't made the mistake of printing money and you don't really on some war mongrel for fuel this would have passed easy.

That said, things can't get on like this if they are only caused by energy, there is a barrier to how high prices can go before finally some other means of production strat becoming profitable, just like shale drilling did, and how Canada is ramping up production as never before.
Winter is almost done, one last push and we're out of this mess for a while, it will help a lot especially with gas and electricity prices, not that they are going to go back to the past levels but growth will slow down to maybe hopefully a near-complete standstill.

Pay attention to the economic situation where you live first, and don't rely too much on the inflation of a country that is not where you live. Methods of anticipating or minimizing it will vary.

That's exactly what he is doing, d'oh!!!! He is talking about his own country's situation.

[Ultegra134]

The situation is about to get worse, with depressing predictions of it surpassing 7%-8% in the upcoming March. How are we dealing with such a situation? It feels like a battle against an invisible enemy.

Not totally invisible, from the Acropolis just look a bit to the left from the direction of Istambul with a really good pair of binoculars about, 3000km away! 
Just like in my case here and almost everywhere in Europe inflation is triggered by energy prices, look at Japan, finally getting 1%, Australia is at 3% just like Vietnam. If you haven't made the mistake of printing money and you don't really on some war mongrel for fuel this would have passed easy.

That said, things can't get on like this if they are only caused by energy, there is a barrier to how high prices can go before finally some other means of production strat becoming profitable, just like shale drilling did, and how Canada is ramping up production as never before.
Winter is almost done, one last push and we're out of this mess for a while, it will help a lot especially with gas and electricity prices, not that they are going to go back to the past levels but growth will slow down to maybe hopefully a near-complete standstill.

It's a vicious cycle, the increasing cost of fuel has led to the increase of transportation costs, which obviously leads to higher prices in goods, in order to compensate for the difference. Same thing goes for electricity. However, you're mentioning that winter is about to finish, how is that going to make a difference in energy and fuel?

It's definitely not going to return to quarantine levels, that's for sure, but with the upcoming tourist season only a few months from now, I find it hard to believe that anything is going to change for the better, anytime soon.

[stompix]

It's a vicious cycle, the increasing cost of fuel has led to the increase of transportation costs, which obviously leads to higher prices in goods, in order to compensate for the difference. Same thing goes for electricity. However, you're mentioning that winter is about to finish, how is that going to make a difference in energy and fuel?

Less energy is needed to heat houses, be it gas or electricity, less energy to heat schools, administration buildings even malls and shops, less demand means lowering the prices to acceptable levels. Europe imports now energy in all forms because during winter it can't function on its own production, once the days become longer, those damn solar panels that are useless in winter finally produce something, you don't need to burn that much stuff for electricity and so on and on. Once the entire oil industry is back on track it's simply impossible for the prices to be that high, all this happened because the world nearly stopped drilling and just barely bounced back although transportation and agriculture are back to pre-pandemic level consumption.

It's definitely not going to return to quarantine levels, that's for sure, but with the upcoming tourist season only a few months from now, I find it hard to believe that anything is going to change for the better, anytime soon.

If inflation will bit too hard in the pockets then you will have fewer people traveling and thus less fuel spent.  
There is always a balance point, sooner or later we will come to it, things can't go up or down in price indefinitely compared to purchasing power, right now it's a matter of how deep those bites marks on our asses will be.

[coolcoinz]

You're talking about the energy, but many countries face skyrocketing inflation because of the pandemic and what their governments did at that time. In 2020 they decided that the best way to fight the virus will be to lock people in their homes, which lead to businesses going bankrupt, especially those that operated on tight margins like cinemas. The main problem was that when they lifted the bans they still kept many strict rules like the number of people allowed in store at one time, you couldn't eat a meal at a restaurant and had to order, you couldn't throw a party, which killed the whole wedding industry... What did our "smart" rulers do? They printed some money and started giving it to businesses that had to be locked down. It sure saved them from going bankrupt for a while, but also made the inflation skyrocket because suddenly everybody had more money. Money that is worth less.

By printing the government imposes a tax on everyone. That's what they do when they have no money. They tax everybody and everything and the worst part about it is that many people don't even feel it. They don't get that additional 1% of inflation means 1% less of their savings every year. Tell them they now have to pay 21% income tax instead of 20 and you'll have protests, but not many people protest against money printing. Media tell them that inflation is a thing that happens, like it was some higher power dropping it on their heads.

[sunsilk]

It's not going to get better or get back to what we've used to see. Once the price especially for fuel and other energy commodities rises, it's hard to pull it back. That's the reality that has been happening all of these years.

Good for those countries that have been researching and making renewable energy as a source as they might feel a little or not feel that much with the global economy's inflation and issue that's being tackled from country to country.

The solutions are what you've said, anything that you can hedge against the inflation like bitcoin, real estate, gold, income-generating asset. You invest on them. Don't forget that when crisis happens and you're affected by a possible war, cash is still needed.

[RickDeckard]

Is it going to get any better, and how soon is that going to be, if prices ever recover. Personally, I highly doubt it that the situation is going to get any better within 2022.

Most probably Powell will eventually be forced to increase interest rates (some analysts say that this may happen in March[1][3][4]) - this is, most of the time, one of "tools" that governments employ to tackle inflation[2]. Regarding this FOMC meeting (that is expected to happen in about 27 days) where Powell may or may not announce this raise, I have this[5] webpage bookmarked that always brings me some interesting perspective regarding how the overall market expects this meeting to happen:



As of writing, the market "feels" that in the next FOMC meeting there is 44.3 % probability of increasing the interest rates in 50-75 bps (0,5 - 0,75 %) - what's more interesting is that the probability of increasing in 25-50 bps (0,25 %-0,5 %) is 55,7 % which means that the market is already expecting that at least there will be an increase of 0,25 %! One never knows who any of this increase will impact each commodity (and inflation itself), but I'm guessing that 2022 is going to be a year where we'll face some financial challenges and market behaviors that haven't existed in a while...
[1]https://www.marketwatch.com/story/fed-expects-it-will-soon-be-appropriate-to-raise-interest-rates-11643223873
[2]https://www.investopedia.com/ask/answers/12/inflation-interest-rate-relationship.asp
[3]https://www.reuters.com/business/finance/inflation-fighting-fed-likely-flag-march-interest-rate-hike-2022-01-26/
[4]https://finance.yahoo.com/news/powell-march-rate-hike-likely-as-fed-looks-to-be-nimble-on-inflation-213943644.html
[5]https://www.cmegroup.com/trading/interest-rates/countdown-to-fomc.html

[Darker45]

I'm not anymore expecting that things are going to get better as far as the rising prices and decreasing purchasing power of fiat is concerned, especially not in my country where the leaders, regulators, and policy-makers are not at all affected. However, the ordinary person in my beautiful yet forsaken country has felt the pain in the rising prices of fish, vegetables, meat and meat products, transportation, and probably everything else.

I've long developed the mentality of not expecting, even hoping, much from the government and how it handles the economy-- the real one and not just the one presented through statistics and numbers. Perhaps we need to strive on our own, look for other means to augment our income. We need to somehow reduce our reliance to the government which is not really looking after our welfare.

Anyway, with Bitcoin, saving is already investing. It is pointless to save in fiat.

[bittraffic]

My country does nothing, they are just hoping people will get used to the prices. If I have money, I'll just invest in real properties where I can make money through rentals or buy a farm.

My approach would be to become a Minimalist. This will reduce a lot of extra expenses for me, there is just less hope for getting back to normal anymore. The experience is just visible already and the more we all gonna try to make more money because the prices of daily needs keep rising. I even use my Japanese bike already to save gas, maybe having a solar panel as well might save me electricity costs.

[Moneyprism]

we can't do much about global inflation which has been getting higher in recent times. moreover, the Russia-Ukraine crisis is getting hotter which is disrupting the global supply chain

.... in my country, fortunately, we have sufficient resources to meet domestic needs and do not need to import too much from other countries. so that the inflation rate here is quite low and under control.

i believe that in the future global inflation will not get better and we hope that global market conditions will not be like in 2008.

[Ultegra134]

It's a vicious cycle, the increasing cost of fuel has led to the increase of transportation costs, which obviously leads to higher prices in goods, in order to compensate for the difference. Same thing goes for electricity. However, you're mentioning that winter is about to finish, how is that going to make a difference in energy and fuel?

Less energy is needed to heat houses, be it gas or electricity, less energy to heat schools, administration buildings even malls and shops, less demand means lowering the prices to acceptable levels. Europe imports now energy in all forms because during winter it can't function on its own production, once the days become longer, those damn solar panels that are useless in winter finally produce something, you don't need to burn that much stuff for electricity and so on and on. Once the entire oil industry is back on track it's simply impossible for the prices to be that high, all this happened because the world nearly stopped drilling and just barely bounced back although transportation and agriculture are back to pre-pandemic level consumption.

While I see where you're coming from, doesn't the same thing occur in the summer? A/C units use a ton of energy as well, however, I'm not sure on how comparable these two are. Particularly here, there's a widespread issue during the summer, due to the vast number of hotels opening up, the energy supply cannot keep up with the demand. However, this is probably an isolated incident and definitely doesn't occur throughout the globe.

It's not going to get better or get back to what we've used to see. Once the price especially for fuel and other energy commodities rises, it's hard to pull it back. That's the reality that has been happening all of these years.

Good for those countries that have been researching and making renewable energy as a source as they might feel a little or not feel that much with the global economy's inflation and issue that's being tackled from country to country.

The solutions are what you've said, anything that you can hedge against the inflation like bitcoin, real estate, gold, income-generating asset. You invest on them. Don't forget that when crisis happens and you're affected by a possible war, cash is still needed.

That's what concerning me, fuel and energy prices hardly ever decrease, especially after reaching such prices. Eventually, they will drop, but they certainly won't return where they used to be.

[sunsilk]

It's not going to get better or get back to what we've used to see. Once the price especially for fuel and other energy commodities rises, it's hard to pull it back. That's the reality that has been happening all of these years.

Good for those countries that have been researching and making renewable energy as a source as they might feel a little or not feel that much with the global economy's inflation and issue that's being tackled from country to country.

The solutions are what you've said, anything that you can hedge against the inflation like bitcoin, real estate, gold, income-generating asset. You invest on them. Don't forget that when crisis happens and you're affected by a possible war, cash is still needed.

That's what concerning me, fuel and energy prices hardly ever decrease, especially after reaching such prices. Eventually, they will drop, but they certainly won't return where they used to be.

That what's been happening all over the years.

They keep on hiking in prices but they barely decrease in price. Well, I should acknowledge that last year there were a series of decrease on its price and as well as the start of lock downs. I've really seen the price of fuel dropped.

As far as what I've heard, this is going to continue up to March. I'm not sure if that's accurate but it's just an overheard and hopefully we start to see the drop of it so everything will drop in price as well.

[HodlNerd]

When it comes to fuel - I don't see how we ever get lower prices with current ESG regulations.

The only reason we saw them come down during the past decade was due to all of the domestic natural gas production.

Unless the U.S. energy policies change, I don't see anything but more expensive energy in the future.

Inflation for other goods, non-commodities, *should* see deflationary effects from technology.. right?  RIGHT?   

I'm pretty scared of inflation and not sure what to expect this next decade.

[Gyfts]

Also, produce price index for the U.S. reaching new records.

https://www.cnbc.com/2022/02/15/producer-price-index-january-2022-.html

Energy prices can fluctuate so some measures might exclude energy indicators, but even setting that aside, everyone is paying more for goods than they were pre-COVID. The supply chain issues only explain part of the issue, I've been paying attention to the PPI because you can make some broader conclusions about the direction of inflation -- the money supply works too.

https://fred.stlouisfed.org/series/M1SL

https://tradingeconomics.com/euro-area/money-supply-m1

The justification for endless printing due to COVID was that it was necessary. I don't believe their lies.

[stompix]

~

While I see where you're coming from, doesn't the same thing occur in the summer? A/C units use a ton of energy as well, however, I'm not sure on how comparable these two are. Particularly here, there's a widespread issue during the summer, due to the vast number of hotels opening up, the energy supply cannot keep up with the demand. However, this is probably an isolated incident and definitely doesn't occur throughout the globe.

That's why I was quoting Germany and its stupid solar program as an example.

When you need heat in the winter you need it during the night, when there is no sun.
When you need cooling during the summer you need it at peak sun hours, when there is also peak solar energy production.
Basically, when it comes to heating during cold winter Europe has only one chance we ditch coal, nuclear,  but during summer days we, fortunately, have another option.

My country does nothing, they are just hoping people will get used to the prices. If I have money, I'll just invest in real properties where I can make money through rentals or buy a farm.

And with higher inflation and lower purchasing power who is going to pay rent on extra properties for rental?
Remember what the last crisis did to the housing and rental markets?

.... in my country, fortunately, we have sufficient resources to meet domestic needs and do not need to import too much from other countries. so that the inflation rate here is quite low and under control.

Unfortunately, if prices will go out of control being a self-sufficient country will not help.
It's a matter of global markets if somebody realizes that instead of selling you bananas for 1$ per kilo they could ship it for 2$ to Germany and sell it at 5$ they will stop selling it internally and export them. The same is for oil, food, and even labor.
One major example is the pork sector, and the global influence China has to price, when things go wrong there and they start buying prices go up everywhere, I can tell you directly from the source a real pain in the ass as we didn't have enough without that.

[Haunebu]

The situation won't get better anytime soon in my opinion primarily thanks to factors like the pandemic, corruption etc and this has been the case for a long time now. I would be surprised if inflation actually goes down drastically.

The ones who adapt successfully to these rising prices will continue to survive while the rest will perish since it's survival of the fittest in this world.

[adaseb]

Yeah for many people in the mining field, depending on where you live. Profits can be horrible since electricity rates have gone up so much in the past year. I am paying record high electrical rates right now. We got LED everywhere and rarely use any high drain devices besides mining rigs.

They say its due to the shortage of energy and price of oil going up so many are using electricity, and when electricity goes up, people start using diesel to generate electricity and its an never ending cycle.

Hence this is why there is going to be lots of fed rate increases this year. Inflation is getting out of hand.

[avikz]

The situation won't get better anytime soon in my opinion primarily thanks to factors like the pandemic, corruption etc and this has been the case for a long time now. I would be surprised if inflation actually goes down drastically.

The ones who adapt successfully to these rising prices will continue to survive while the rest will perish since it's survival of the fittest in this world.

Inflation doesn't go down drastically. It always happens slowly and steadily if corrective measures are taken by the government. The only way to deal with inflation is to reduce the demand. To reduce the demand, tou have to suck out the excess money from the hands of the common people to government coffers. Interest rate increases and higher taxes are the most effective ways to do that.

For a common people to survive during high inflation, he has to invest in an inflation adjusted instruments like real estate or Gold or cryptos. So when the purchasing power of a currency goes down, the prices of these assets goes up to fill in the hollow.

[Ultegra134]

~

While I see where you're coming from, doesn't the same thing occur in the summer? A/C units use a ton of energy as well, however, I'm not sure on how comparable these two are. Particularly here, there's a widespread issue during the summer, due to the vast number of hotels opening up, the energy supply cannot keep up with the demand. However, this is probably an isolated incident and definitely doesn't occur throughout the globe.

That's why I was quoting Germany and its stupid solar program as an example.

When you need heat in the winter you need it during the night, when there is no sun.
When you need cooling during the summer you need it at peak sun hours, when there is also peak solar energy production.
Basically, when it comes to heating during cold winter Europe has only one chance we ditch coal, nuclear,  but during summer days we, fortunately, have another option.

Valid points and great explanation throughout your posts. I guess only time will tell, but from my point of view, it's not looking that it's going to get much better within 2022.

The situation won't get better anytime soon in my opinion primarily thanks to factors like the pandemic, corruption etc and this has been the case for a long time now. I would be surprised if inflation actually goes down drastically.

The ones who adapt successfully to these rising prices will continue to survive while the rest will perish since it's survival of the fittest in this world.

Inflation doesn't go down drastically. It always happens slowly and steadily if corrective measures are taken by the government. The only way to deal with inflation is to reduce the demand. To reduce the demand, tou have to suck out the excess money from the hands of the common people to government coffers. Interest rate increases and higher taxes are the most effective ways to do that.

For a common people to survive during high inflation, he has to invest in an inflation adjusted instruments like real estate or Gold or cryptos. So when the purchasing power of a currency goes down, the prices of these assets goes up to fill in the hollow.

How exactly does an average citizen, with an average or slightly above average, invest in gold or real estate? I mentioned in the starting post, that the majority of people who claim that inflation is battled by investing have no valid points about investments. Don't get me wrong, I'm not implying that I am, nor am I trying to insult you, but everyone says "invest" without being specific on what and how to do so.

[Fortify]

The increasing inflation is currently soaring across the globe, leading to excessive price increases in most goods, in fuel and energy. To make matters worse fuel and energy costs are not included in inflation's index, thus, a 5-6 or 7% increase, is actually a lot worse than anticipated.

In particular, Greece is now facing a 6.2% rise in inflation, compared to January 2021, the largest ever recorded since 1997, compared to 5.1% in December. Increases are now spreading across the spectrum of the economy and not just energy, as it was a while ago, thus reducing disposable income and reducing inflation not to an economic issue but to a wider social issue.

According to ELSTAT data, the goods with the largest increase compared to January 2021 are:

Natural gas with an increase of 154.8%
Heating Oil with an increase of 36%,
Electricity with 56.7%,
Fuels with 21.6%,
Lamb and goat with 17.6%,
Olive oil with 15.4% and
potatoes with 12.3%.
Fresh vegetables 14.4%
 
The situation is about to get worse, with depressing predictions of it surpassing 7%-8% in the upcoming March. How are we dealing with such a situation? It feels like a battle against an invisible enemy. Our available income is shrinking, what is the best way to tackle inflation? The most common answer I've seen is to invest, rather than save, but how exactly do you invest? Since when is buying cryptocurrencies, such as Bitcoin, tackling inflation, since it can also face periods that it's losing value.

Is it going to get any better, and how soon is that going to be, if prices ever recover. Personally, I highly doubt it that the situation is going to get any better within 2022.

Unless supply chains start to unwind this inflation mess and get back to stability in a couple years, this is going to create a spiral affect that governments all around the world will struggle to control. People are going to start asking for higher wage increases to keep up, which pushes costs up further throughout the supply chain and causes further rises. Eventually central banks, who have avoided taking a responsible approach for many years, will be forced to put up interest rates substantially, which will cause mortgage costs to rise and eventually people will not be able to afford to remortgage and some may lose their homes. This might be caused by a bit of a spending spree after Covid but unless it calms down it could cause the next economic bust.

[Captain Corporate]

 It is really not about inflation being so high that bothers me the most, it is being global and destructive and unpreventable that bothers me the most. I mean sure inflation happens time to time, for example my nation had a hoooorible case of it during early 90's as well. But that doesn't mean that we couldn't stop it, it wasn't like soms systemic problem, it was a problem by the idiotic governments movements and then it was fixed eventually and we got better for a while, like for nearly two decades. Nowadays though, we are living the same thing, this time it is global, and this time it is a bit systemic. Thats the scary part, like there is no way to stop this, it will keep on going unless something changes. Rich are getting so rich that we are talking about 300+ billion dollars whereas the richest person had like 50-60 billion dollars only 10 years ago, and this is just one person, we had 10+ people with 100+ billion dollar valuation. Meanwhile workers are getting so little that, people who are 20-30 year old stopped working for a while, for real they had anti-work movement and quite in masses and USA had a whole shortage crisis. So all in all I would have to say that unless the system changes a bit, we are going to keep on living this problem for a long time and inflation will keep on rising.

[Lucius]

Some may remember all those discussions about all that money that some governments have literally thrown into the system to keep it afloat. I think it was quite realistic to expect that sooner or later someone will have to pay for it, and I think that is exactly what is happening now.

My government has announced that it will help citizens and the economy by reducing VAT, freezing fuel prices, and limiting increases in gas and electricity prices, and one-time cash benefits to retirees. The only thing strange about that is the date, they chose April 1 as the date when all these measures come into force.

When it comes to how to deal with inflation, I think everyone needs to be aware that they can't save on the basics, but we can save on what we don't really need (alcohol, cigarettes, gambling, less driving, and more use of public transport...). Maybe someone will say that this is not enough, but we have to start from something and try to survive, even with the help of Bitcoin that we have bought or earned in the past years.

[Ultegra134]

Some may remember all those discussions about all that money that some governments have literally thrown into the system to keep it afloat. I think it was quite realistic to expect that sooner or later someone will have to pay for it, and I think that is exactly what is happening now.

My government has announced that it will help citizens and the economy by reducing VAT, freezing fuel prices, and limiting increases in gas and electricity prices, and one-time cash benefits to retirees. The only thing strange about that is the date, they chose April 1 as the date when all these measures come into force.

When it comes to how to deal with inflation, I think everyone needs to be aware that they can't save on the basics, but we can save on what we don't really need (alcohol, cigarettes, gambling, less driving, and more use of public transport...). Maybe someone will say that this is not enough, but we have to start from something and try to survive, even with the help of Bitcoin that we have bought or earned in the past years.

It would happen eventually, it was a bubble waiting to burst. In a country with financial prosperity, the government can take measures against inflation, some of which are reducing VAT and taxation on fuel and electricity, like you've already mentioned.

The political party, Diem25, of Yanis Varoufakis suggested to reduce the VAT to 15%, reduce taxation in fuel and electricity, along with some other measures I can't recall, and couldn't find the related article. However, it was quickly turned down.

I was generally cautious when going to the supermarket, purchasing cheaper off-brands, but still, the condition is a pain in the ass, you can't avoid it.

[Lucius]

It would happen eventually, it was a bubble waiting to burst. In a country with financial prosperity, the government can take measures against inflation, some of which are reducing VAT and taxation on fuel and electricity, like you've already mentioned.

I do not think that I live in such a country, but all these announced measures have something to do with some EU funds - although it is only a kind of mitigation of everything that inevitably has to happen, and far from being a solution. I should be happy that the price of electricity will increase by only 25% in 2 months, and the price of gas by about 20%, not to mention everything else that will inevitably become more expensive.

I was generally cautious when going to the supermarket, purchasing cheaper off-brands, but still, the condition is a pain in the ass, you can't avoid it.

Some brands are definitely cheaper, but their quality is often questionable, so it's hard to balance between price and quality. I often buy products that are 25% to 50% cheaper than regular prices, all because they are approaching the expiration date - snacks, chocolates, nuts, and even meat can be obtained at very good prices.

If you have the opportunity to plant a small garden, it is definitely worth producing home-grown vegetables such as tomatoes, cucumbers, peppers, peas, carrots that you can use until late autumn fresh - and then also store them for the winter.

[Vatimins]

     Times are difficult right now and will just get even worse as time goes by. This is the case regardless of where you are residing in this world. Inflation is a frightening and invincible enemy that we can never eradicate. The best thing a person could do is invest on assets that are safe from inflation or at least won't be affected that much. Crypto currencies are good along with gold, real estate and more. You get my point. The world is bound to go into oblivion, I pity the coming generations. Had the people before us cared enough, they never would've abused this world that we live in. What is left for us to di is only to slow down the process, saving the world is now kind of impossible.

[Ultegra134]

It would happen eventually, it was a bubble waiting to burst. In a country with financial prosperity, the government can take measures against inflation, some of which are reducing VAT and taxation on fuel and electricity, like you've already mentioned.

I do not think that I live in such a country, but all these announced measures have something to do with some EU funds - although it is only a kind of mitigation of everything that inevitably has to happen, and far from being a solution. I should be happy that the price of electricity will increase by only 25% in 2 months, and the price of gas by about 20%, not to mention everything else that will inevitably become more expensive.

I was generally cautious when going to the supermarket, purchasing cheaper off-brands, but still, the condition is a pain in the ass, you can't avoid it.

Some brands are definitely cheaper, but their quality is often questionable, so it's hard to balance between price and quality. I often buy products that are 25% to 50% cheaper than regular prices, all because they are approaching the expiration date - snacks, chocolates, nuts, and even meat can be obtained at very good prices.

If you have the opportunity to plant a small garden, it is definitely worth producing home-grown vegetables such as tomatoes, cucumbers, peppers, peas, carrots that you can use until late autumn fresh - and then also store them for the winter.

Where are you from, if you don't mind me asking? It was quickly denied here, after a few political parties suggested it. I highly doubt it that it will occur here, unless the European Union says so.

I've noticed many similarities between off-brands and premium brands in the supermarket, for instance, the supermarket brand has the exact same packaging with Nutella and coincidentally, it's also made it Italy. Anyway, you can get away with buying off-brands in the majority of products, however, quality is definitely not the same, you get what you pay for.

[paxmao]

There are three possible scenarios for most of the rich world going forward:
Stagflation: Inflation without growth. An offer shock (see commodities prices) including energy causes inflation, interest rates are raised and then growth collapses.
Hyperinflation: Same, but interest rates are not raised to protect zombie companies and the mortgages market and inflation becomes rampant.
Controlled inflation: Inflation corrects once the world trade resumes its due course. Interest rates go back to ultra-low and our zombified economy goes on until next COVID without any structural reform.

[AicecreaME]

It's not going to get better or get back to what we've used to see. Once the price especially for fuel and other energy commodities rises, it's hard to pull it back. That's the reality that has been happening all of these years.

Good for those countries that have been researching and making renewable energy as a source as they might feel a little or not feel that much with the global economy's inflation and issue that's being tackled from country to country.

The solutions are what you've said, anything that you can hedge against the inflation like bitcoin, real estate, gold, income-generating asset. You invest on them. Don't forget that when crisis happens and you're affected by a possible war, cash is still needed.

Your first statement speaks volumes. I've noticed that over the years too. The moment the raw materials and even the commodities, processed goods, and services offered have increased in value, it would be very difficult to make it lower again or to at least bring it back to its original price. Most often than not, they retain their prices and no longer roll back prices because of inflation. And if ever they would opt to do so, what happens is the goods you'll get are lesser than before, which is also called shrinkflation. The businesses would retain their prices but would lower the quality of the product which is a terrible thing as well if they won't increase their prices.

In the oil industry, it's really much harder to make the prices affordable because most resources they use are non-renewable which means that as time goes by, there will be only a few left which means low supply and bigger demand that could really lead to an increase in prices. Those first-world countries are really on the advantaged side because they have the means to research and make products that are sustainable and cost-efficient that would be very beneficial on the country, their citizens, as well as the planet. I hope more countries would have the same initiative. After all, anyone can start small.

Inflation is inevitable. In fact, it is normal in an economy. What's not normal is the speed of increase of inflation which the government fails to control. As a result, the citizens, most particularly the middle and lower bracket of the society are most affected. So, it's really much better to invest in those things that are lesser prone to inflation such as crypto and real-estate. Still, anyone should do their own research before investing to be able to secure their future. 

[Lucius]

Where are you from, if you don't mind me asking? It was quickly denied here, after a few political parties suggested it. I highly doubt it that it will occur here, unless the European Union says so.

Just hover with your pointer on the globe icon in my profile and you will get that info

I think that these are funds that EU members received as an aid in the pandemic, and part of that will be used to alleviate inflation. Of course, if politicians don’t steal a good chunk of that money before it gets into the right hands. These days, my country is shaken by an affair in which the Minister of Enterprise and Crafts was arrested for allocating funds without a tender, and even the Deputy Prime Minister and many other state officials are involved.

Nothing new in a country where the former prime minister is in prison and the ruling party is condemned as a criminal organization, so one rightly wonders why more than 400 000 people have left the country in the past 10 years. When I look at the big picture, there are worse things than inflation that have been going on for decades.

[stompix]

I was generally cautious when going to the supermarket, purchasing cheaper off-brands, but still, the condition is a pain in the ass, you can't avoid it.

Some brands are definitely cheaper, but their quality is often questionable, so it's hard to balance between price and quality. I often buy products that are 25% to 50% cheaper than regular prices, all because they are approaching the expiration date - snacks, chocolates, nuts, and even meat can be obtained at very good prices.

I've noticed many similarities between off-brands and premium brands in the supermarket, for instance, the supermarket brand has the exact same packaging with Nutella and coincidentally, it's also made it Italy. Anyway, you can get away with buying off-brands in the majority of products, however, quality is definitely not the same, you get what you pay for.

Hihi, exactly, you get what you pay for, and in some cases, it's not about the manufacturer is about the requirements the supermarket or the brand asks for.
I can tell you this for sure as the factory that we have some contracts for meat delivery is manufacturing both for Lild and for their own brand, of course, both the recipe and the price is different but the main ingredients come from the same source. Oh, in this case, both their bratwurst sucks but, that's another story. 

The problem with chain store brands is that they don't have one huge factory with the same standards and suppliers they usually have tens of small companies that produce a few gods for them under the same label, in some cases it turns out to be good in some cases it's garbage, no matter how strict you are there will always be differences between and when it comes to food a difference means you've wasted money and it gets thrown away.

I think that these are funds that EU members received as an aid in the pandemic, and part of that will be used to alleviate inflation. Of course, if politicians don’t steal a good chunk of that money before it gets into the right hands. These days, my country is shaken by an affair in which the Minister of Enterprise and Crafts was arrested for allocating funds without a tender, and even the Deputy Prime Minister and many other state officials are involved.

That's why the aid should be targeted directly by bringing down taxes rather than throwing money away which will never reach the ones that are needed.
Rather than declaring a random cap on prices which we all know it's going to end badly as it never worked ever the government could work with the manufacturers and resellers directly and get rid of surplus taxes there, making a deal by waiving for some of the tax on the difference they've sold their products for.
So if they drop the prices they will get the reduced taxation by a quota, incentivizing them to drop the prices to sell more while keeping the same profits.

If you just throw money at poeple, poeple will have more to spend driving prices up, who will be stupid to lower prices when poeple have more money?
If you drop VAT they will keep the same prices, the consumer wills till see 1E, for him it doesn't matter before 20 cents were VAT and now 10 cents are VAT.
 

[kaya11]

The situation is about to get worse, with depressing predictions of it surpassing 7%-8% in the upcoming March. How are we dealing with such a situation? It feels like a battle against an invisible enemy. Our available income is shrinking, what is the best way to tackle inflation? The most common answer I've seen is to invest, rather than save, but how exactly do you invest? Since when is buying cryptocurrencies, such as Bitcoin, tackling inflation, since it can also face periods that it's losing value.

Is it going to get any better, and how soon is that going to be, if prices ever recover. Personally, I highly doubt it that the situation is going to get any better within 2022.

I believe changes rely on ourselves, your are right on the investing part, but I chose to invest the money on lands to grow crops. My father is an agriculturists and we grow some of our food since last year. Vegetables and spices that are easy to grow, it is a very big leap to cover some of our daily needs.
I read and watch, articles or farming videos to increase my knowledge. We must be ready to be self sufficient, inflation is getting worst and our saving method is never getting us any better. Others should try it too, start small in the back yard of none you could farm on pots or make a small bed for your plants, it is also fun.

[Ultegra134]

I think that these are funds that EU members received as an aid in the pandemic, and part of that will be used to alleviate inflation. Of course, if politicians don’t steal a good chunk of that money before it gets into the right hands. These days, my country is shaken by an affair in which the Minister of Enterprise and Crafts was arrested for allocating funds without a tender, and even the Deputy Prime Minister and many other state officials are involved.

That's why the aid should be targeted directly by bringing down taxes rather than throwing money away which will never reach the ones that are needed.
Rather than declaring a random cap on prices which we all know it's going to end badly as it never worked ever the government could work with the manufacturers and resellers directly and get rid of surplus taxes there, making a deal by waiving for some of the tax on the difference they've sold their products for.
So if they drop the prices they will get the reduced taxation by a quota, incentivizing them to drop the prices to sell more while keeping the same profits.

If you just throw money at poeple, poeple will have more to spend driving prices up, who will be stupid to lower prices when poeple have more money?
If you drop VAT they will keep the same prices, the consumer wills till see 1E, for him it doesn't matter before 20 cents were VAT and now 10 cents are VAT.
 

An immediate living allowance is now being planned by the Greek government, in order to assist households. It's been said that the allowance will be up to 100 euros, for grocery shopping. While it's certainly assisting those who can benefit from it, it's only a temporary measure, on top of that, the amount to be distributed is quite insignificant for a family.

The best solution would be to lower the VAT, in products and fuel, even temporarily, till the situation normalizes.

Edit: Fixed some quotes.

[Ultegra134]

A little update, after the announcement of March inflation in Greece, from the Hellenic Statistical Authority. Greece's inflation in March surpassed 8.9%, the highest since 1995. On top of that, the average price for fuel is 2€/liter for petrol and €1.70/liter for diesel, while we're having one of the most expensive electricity in Europe.

[kryptqnick]

I've lived in a country with a rather unstable fiat, so I got used to high inflation. Yes, it's generally not good for the economy, sure. But a 6.2% is no reason to be alarmed and is actually something barely noticeable! It's even pretty close to the target inflation of 5%. Inflation is bad and seriously noticeable either when a person barely makes the ends meet as is, so even, say, a 10% difference means that this person now can't afford something this person really needs, or when inflation is so huge it's impossible not to notice it (like in Russia right now, with many prices for products rising very significantly, according to Russian YouTube videos).

[Ultegra134]

I've lived in a country with a rather unstable fiat, so I got used to high inflation. Yes, it's generally not good for the economy, sure. But a 6.2% is no reason to be alarmed and is actually something barely noticeable! It's even pretty close to the target inflation of 5%. Inflation is bad and seriously noticeable either when a person barely makes the ends meet as is, so even, say, a 10% difference means that this person now can't afford something this person really needs, or when inflation is so huge it's impossible not to notice it (like in Russia right now, with many prices for products rising very significantly, according to Russian YouTube videos).

As I've mentioned before, it's at 8.9%, which is way too noticeable, that means that most every-day goods have rose in price an average of 8%, which might not seem much at first, but if you consider that each item you purchase is way pricier than it was last year, the difference on a monthly or yearly basis is quite significant.

What's worse, is that in those inflation figures, electricity and fueling costs are not taken into account, while inflation is expected to rise even further the following months.

[adaseb]

Yes and this is why many markets like crypto are struggling to make new ATHs and many medium type of stocks. Inflation is very high and central banks need to control it by raising rates. They need to raise rates so there is less demand for goods and in return the prices will go down.

One example of this is to suppress the prices of real estate. They will weed out many buyers because payments will be higher and as a result they will make prices stop rising and maybe drop in certain markets.

[Lucius]

A little update, after the announcement of March inflation in Greece, from the Hellenic Statistical Authority. Greece's inflation in March surpassed 8.9%, the highest since 1995. On top of that, the average price for fuel is 2€/liter for petrol and €1.70/liter for diesel, while we're having one of the most expensive electricity in Europe.

I will not say that there is anything in the fact that Greece is in a position to pay dearly for all the help it received to get out of bankruptcy, but it seems to me that your hands are quite tied and that you are at the mercy of Brussels and the European Central Bank. I will not say that it is better in my country because we are somewhere in the middle when it comes to inflation and data for February, but since we have our own currency, some things are still easier to implement than being in the eurozone.

Some other countries are even more disadvantaged with double-digit inflation rates - Lithuania, Estonia, and Latvia are examples that there can always be worse. Given that all three countries have decided to stop importing Russian oil and gas, it remains to be seen how this will affect inflation in the coming months.


Source

[Ultegra134]

Yes and this is why many markets like crypto are struggling to make new ATHs and many medium type of stocks. Inflation is very high and central banks need to control it by raising rates. They need to raise rates so there is less demand for goods and in return the prices will go down.

One example of this is to suppress the prices of real estate. They will weed out many buyers because payments will be higher and as a result they will make prices stop rising and maybe drop in certain markets.

Certainly, the market has been awful the past few weeks, my DeFi investment is going downhill, like the rest of the market, showing little to no recovery for days.

A little update, after the announcement of March inflation in Greece, from the Hellenic Statistical Authority. Greece's inflation in March surpassed 8.9%, the highest since 1995. On top of that, the average price for fuel is 2€/liter for petrol and €1.70/liter for diesel, while we're having one of the most expensive electricity in Europe.

I will not say that there is anything in the fact that Greece is in a position to pay dearly for all the help it received to get out of bankruptcy, but it seems to me that your hands are quite tied and that you are at the mercy of Brussels and the European Central Bank. I will not say that it is better in my country because we are somewhere in the middle when it comes to inflation and data for February, but since we have our own currency, some things are still easier to implement than being in the eurozone.

Some other countries are even more disadvantaged with double-digit inflation rates - Lithuania, Estonia, and Latvia are examples that there can always be worse. Given that all three countries have decided to stop importing Russian oil and gas, it remains to be seen how this will affect inflation in the coming months.

I don't expect to ever fully pay off the debt we own, things were going quite better before Covid-19 hit though, now we're at rock bottom again, at least we're not alone now. Definitely, there are countries with worse figures, however, it's pretty hard to compare who's in the worse position, unless we take into account living costs and minimum wage, something which is severely low here, compared to other countries.

P.S I was to visit Croatia next week but couldn't find affordable tickets from my area (I live on an island), I really hope I could visit next time, Zadar and all the Adriatic islands are extraordinary.

[Lucius]

I don't expect to ever fully pay off the debt we own, things were going quite better before Covid-19 hit though, now we're at rock bottom again, at least we're not alone now.

The time when governments tried to help the economy and ordinary people with various measures is over, now they will try to charge us with interest, and they have two good excuses, inflation and war. It is not easy for ordinary people, but for those who knew that this time will come sooner or later, it is still easier to reconcile that we have to adjust - I have experience with much worse things than inflation, so I can accept such challenges perhaps easier than others.

P.S I was to visit Croatia next week but couldn't find affordable tickets from my area (I live on an island), I really hope I could visit next time, Zadar and all the Adriatic islands are extraordinary.

I hope you enjoy your visit, especially at this time of year when it is not too hot - and I hope it will be nice weather, because yesterday was a very stormy day with strong winds and rain along the entire coast. The good thing is that all measures against covid have been removed, masks are needed only in pharmacies, hospitals, and nursing homes. I would buy you a beer, but unfortunately, I am currently located far from the coast.

[Ultegra134]

I don't expect to ever fully pay off the debt we own, things were going quite better before Covid-19 hit though, now we're at rock bottom again, at least we're not alone now.

The time when governments tried to help the economy and ordinary people with various measures is over, now they will try to charge us with interest, and they have two good excuses, inflation and war. It is not easy for ordinary people, but for those who knew that this time will come sooner or later, it is still easier to reconcile that we have to adjust - I have experience with much worse things than inflation, so I can accept such challenges perhaps easier than others.

P.S I was to visit Croatia next week but couldn't find affordable tickets from my area (I live on an island), I really hope I could visit next time, Zadar and all the Adriatic islands are extraordinary.

I hope you enjoy your visit, especially at this time of year when it is not too hot - and I hope it will be nice weather, because yesterday was a very stormy day with strong winds and rain along the entire coast. The good thing is that all measures against covid have been removed, masks are needed only in pharmacies, hospitals, and nursing homes. I would buy you a beer, but unfortunately, I am currently located far from the coast.

Excuse me for taking a long time to reply. Looking back to my post, I believe that I haven't phrased it correctly. I wanted to visit Croatia (Zadar to be exact), but there weren't any direct flights due to my location, and had to take another plane from Rome, after spending the night in the airport, while the whole trip would cost a fortune.

Would love to visit in the future, will certainly try to to visit within the year, I'll let you know if you're up to for a beer!

I'm currently in Poland, Krakow, that's why I'm not that active. So far it's great here.

My best regards to the whole community!

[Ultegra134]

Inflation surges to 10.7% in Greece according to Hellenic Statistical Authority (ELSTAT) in May. Eurostat claims that it's the fifth highest in the Eurozone. At the same time, Italy surpassed a 36-year-old record high for inflation, reaching 6.9%, which is considerably lower than Greece, for two countries that share quite a few similarities.

According to ELSTAT, the major price hikes have led to a reduction in consumption in supermarkets, recording a 1.3% decrease in sales in March. Concerns are being raised on whether households are going to manage the increasing living costs, with fuel costing an average of €2.35/liter of unleaded petrol, while electricity has skyrocketed, being one of the most expensive MWh in Europe, even months before the crisis started in the rest of Europe.

Sources:
https://www.ekathimerini.com/economy/1185705/prices-surge-10-7-in-may/
https://sofokleous10.gr/2022/05/31/italy-a-36-year-record-high-for-inflation/

[Sir Legend]

Inflation is increasingly worrying us, especially Russia, which is increasingly aggressive and does not want to stop the war so that the global economy can be threatened with a recession, of course this is a serious problem that makes us always be vigilant, actively investing can be the best solution to overcome inflation.