Consequences and effects of inflation | Financially and Mentally

[davis196]

10% inflation is no reason to panic and get depressed. Many counties have suffered hyperinflation in the past and the population of those countries has found a way to overcome the difficulties.
I'm sure that inflation will get under control in the spring of 2023(if nothing bad happens until then).
The central banks started raising the interest rates. Fuel prices (mostly oil) will slowly decrease, because the global economy is slowing down.
Inflation doesn't have any mental effect on me. I know it sucks and I started consuming less goods and services, but this isn't the end of the world and I'm sure that I can survive this period.

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[Die_empty]

How are you currently coping? Do you believe that we'll see any kind of improvement in the next few months/years? What coping mechanisms have you developed?

Except one is a producer, or running a business where you can easily push inflation costs on to the customers, we are all hard hit by the rising inflation and cost of living. It's like the elephant in the room that keeps growing.

I'm from Nigeria, and I'll say we have had lots of experience with coping in similar situations, as series of bad governments has resulted in rising inflation and cost of living long before covid or oil crisis hit. The general struggle is keeping your income able your expenses, and finding a way to salvage some of it for savings or investments. This is not always easy, as jobs are not readily available or well paying.
Finding ways to cut down expenses to a minimum also helps leave out more for savings/investments.

I don't expect any improvement in the next couple of months or years globally.

Nigerian government is not even making the situation easy for the inhabitants of that nation. They are increasing taxes in different areas. Custom duties, electricity bills, VAT, bank charges are all increasing and the government has failed to increase salaries. Cutting expenses in Nigeria would be very difficult because the naira is loosing value everyday, thereby reducing the purchasing power of the people. Investment is far from the reach of Nigerians because people are just striving to survive.

Global economic improvement would be gradual and relative. Gradual because until the conflict between Russia and Ukraine is settle, global economic growth would continue to shrink. Relative because financially prudent nations would come out of recession earlier than the corrupt and wasteful nations. Nigeria is experiencing the oil boom yet they still borrowing to fund budget because of corruption and waste. But, Saudi Arabia is using the part large profit they are making to settle their national debt and the other portion is been used to expand oil producing capacity of the kingdom.      

[$anounimus$]

Of course, with a situation like this dominantly making people still deal with the effects of rising prices, even the smallest component like us also feels the impact of trying to slowly reduce the level of spending.

These are probably just a few minor tactics worth trying. I'm trying to develop some coping mechanisms such as scheduling food shopping, and eating at home more often because part of what makes inflation so annoying is that it destroys the value of the money we already have, and to actually live comfortably just got worse.

[Ultegra134]

10% inflation is no reason to panic and get depressed. Many counties have suffered hyperinflation in the past and the population of those countries has found a way to overcome the difficulties.
I'm sure that inflation will get under control in the spring of 2023(if nothing bad happens until then).
The central banks started raising the interest rates. Fuel prices (mostly oil) will slowly decrease, because the global economy is slowing down.
Inflation doesn't have any mental effect on me. I know it sucks and I started consuming less goods and services, but this isn't the end of the world and I'm sure that I can survive this period.

As I've mentioned earlier, I'm not facing major issues currently, however, I'm working a lot, have cut back on most expenses, and it's a huge struggle to put money aside, while in the past, I spent a lot more money for personal entertainment (dining out, going to a bar etc.) and still managed to save each month. Nowadays, there are months that I'm spending more than I make, slowly draining my savings.

If this situation worsens in the near future, something which is certain, then I'll definitely face financial issues. Money isn't the only matter troubling me, as I've said previously, higher paying jobs are quite limited while the current political party is sending the country straight to the gutter, driving us, citizens, into a state of despair. We're officially one of the most corrupt countries in the EU and the lowest ranked European country for press freedom.

[Lucius]

I have to admit that I have never experienced such a drastic increase in the prices of literally everything, because some things go up by 100% literally overnight. People are still somehow dealing with it and trying to change their habits, but if inflation runs rampant during the summer, what will happen when winter comes?

Until now I was optimistic and hoped for better, but unfortunately now I can't see the light at the end of the tunnel which is getting longer and darker. People can endure everything, but if they can't put enough food on the table every day, I'm afraid that some will turn to crime, and that dissatisfaction could cause major riots and protests. The EU will be put to the test in the coming months, but I think that everyone should do their best to find the strength to endure.

We're officially one of the most corrupt countries in the EU and the lowest ranked European country for press freedom.

I know what you mean, it's not much better in my country either - the former prime minister is in prison, the current one has already changed almost all the ministers several times because they were all accused of abuse of position and criminal activities. We have more than 400 000 fewer people in the country than 10 years ago and record earnings from tourism, which for now has no effect on ordinary people.

[jaberwock]

It is difficult to say how long this current period of inflation will last. However, it is important to remember that there are always ups and downs in economies and this too shall pass.

In the meantime, it is important to find ways to cope with the current situation. One way to do this is to cut back on unnecessary expenses and focus on essential needs. Another way to cope is to find ways to increase your income. Like finding ways to make extra money through side hustles(you could try trading your crypto investments on a p2p platform, there's a good margin of around 3~4% at some sites or provide your services at platform like upwork & give a couple of hours daily) .

Anyways, it is important to remember that this is not the end of the world and that things will eventually improve Tough times make tough people.

I think that inflation is already stapled. It doesn't end but it only grows. Hoping or waiting for it to stop won't work but why not do something which can help us survive in this difficult situation? We can apply some of things you said there like skipping things which aren't really needed. They can be beer, cigs, gambling. Not only that we can save enough money but we will also feel a better person.

There will be no health, emotional and mental issues that we can feel. When you can do that, you can choose to not do a side hustle but if you can't leave your bad habits and will still prefer to live like a king then you need to grind much harder.

[Ultegra134]

Until now I was optimistic and hoped for better, but unfortunately now I can't see the light at the end of the tunnel which is getting longer and darker. People can endure everything, but if they can't put enough food on the table every day, I'm afraid that some will turn to crime, and that dissatisfaction could cause major riots and protests. The EU will be put to the test in the coming months, but I think that everyone should do their best to find the strength to endure.

We're officially one of the most corrupt countries in the EU and the lowest ranked European country for press freedom.

I know what you mean, it's not much better in my country either - the former prime minister is in prison, the current one has already changed almost all the ministers several times because they were all accused of abuse of position and criminal activities. We have more than 400 000 fewer people in the country than 10 years ago and record earnings from tourism, which for now has no effect on ordinary people.

So did I, but it honestly looks pretty pointless anymore. I started hoping for a small relief after Crude oil's value dropped, but it wasn't long lasting. Not only did oil surpass $100/barrel, but also the exchange rate of EUR/USD has gone downhill.

The worst thing in this situation is our government, it's so corrupt that's not helping its citizens. Greece has made the headlines several times in the last few months, by world renowned news websites, such as NY times, exposing our corrupt government and the scandals they're involved it. How am I supposed to not be hopeless when I'm working so many hours and seeing them not give a single damn for the country and its citizens.

[Gyfts]

Approximately since March, inflation has started taking a toll on me, first financially and then psychologically. At first, I wasn't really bothered; it wasn't that extreme and wasn't too worried. I was still making ends meet without too many issues and still managed to save a little, without taking into account my cryptocurrency investments. However, as time passes by, it gets worse and worse. I believed that the tourism sector could slow down the recession in Greece, but that didn't happen. Prices of goods are increasing every week, while electricity bills have soared.

Some industries are more recession proof than others -- tourism is a tough industry to weather out during a recession. The first expenses people cut are vacations and travel.

Do you believe that we'll see any kind of improvement in the next few months/years?

No, probably not. I'd love to sugarcoat it, even for my own sanity considering a large portion of this recession was inevitable had COVID policy been handled different, but the state of stagflation lasts years. Greece will lag behind the curve in terms of the recovery if a larger portion of its GDP is affiliated with tourism. You'll need to wait for Europe to regain economic control, presumably the U.S. as well before smaller economies follow.

Setting aside the battered economy from COVID, Ukrainian war will likely last years so the absolute earliest I'd see a return to pre-pandemic GDP/inflation rates is probably 2025-2026.

[Republikcoin.com]

Of course, with a situation like this dominantly making people still deal with the effects of rising prices, even the smallest component like us also feels the impact of trying to slowly reduce the level of spending.

I've even worked out my spending levels on a monthly basis to not spend money on things I don't need. And that I did not because of inflation or the like, but rather to save my personal expenses in life.

These are probably just a few minor tactics worth trying. I'm trying to develop some coping mechanisms such as scheduling food shopping, and eating at home more often because part of what makes inflation so annoying is that it destroys the value of the money we already have, and to actually live comfortably just got worse.

You have to get used to things that are a little difficult in order to enjoy them until you are really comfortable with these conditions. Due to the issue of eating at home more often, I think it should be done and I have rarely left the house since last year so I always stock up on food to use for one month before I buy more stock for the next month.

[Silberman]

10% inflation is no reason to panic and get depressed. Many counties have suffered hyperinflation in the past and the population of those countries has found a way to overcome the difficulties.
I'm sure that inflation will get under control in the spring of 2023(if nothing bad happens until then).
The central banks started raising the interest rates. Fuel prices (mostly oil) will slowly decrease, because the global economy is slowing down.
Inflation doesn't have any mental effect on me. I know it sucks and I started consuming less goods and services, but this isn't the end of the world and I'm sure that I can survive this period.

The only problem that I see with this is that this is the best possible scenario that we can expect, and I personally hope that is what happens, however what if something happens which makes it impossible for the current inflation crisis to be resolved as quickly? That is when things are going to get complicated because the tools the governments have at their disposal in order to control what is happening will become even more ineffective, and we could reach the point in which they could not be enough to stop the crisis, and that is when we could begin to see hyperinflation going all around the world, and such scenario brings simply too much pain to those which are poor and the middle class as well.

[Lucius]

So did I, but it honestly looks pretty pointless anymore. I started hoping for a small relief after Crude oil's value dropped, but it wasn't long lasting. Not only did oil surpass $100/barrel, but also the exchange rate of EUR/USD has gone downhill.

The worst thing in this situation is our government, it's so corrupt that's not helping its citizens. Greece has made the headlines several times in the last few months, by world renowned news websites, such as NY times, exposing our corrupt government and the scandals they're involved it. How am I supposed to not be hopeless when I'm working so many hours and seeing them not give a single damn for the country and its citizens.

Perhaps it is some kind of curse of our nations that are located in the east or south of Europe, unlike those who are a little happier with their politicians in the west (or at least it seems that way). In a conspiracy theory, some would say that the east must always be worse so that the west can benefit from it, and above all I mean human potential here. Countries like Germany need a quality workforce, and it's no wonder that over 300 000 people have emigrated from my country in the past 10 years to that country alone.

In a way, the corruption and incompetence of our politicians creates ideal conditions for the west of the EU, where people leave to live better - and our streets and cities little by little become a place for some completely different people to live. Don't get me wrong, I'm not a racist and I have nothing against any honest and well-intentioned person, but I'm not in favor of such a way of changing Europe - everyone should have equal conditions for life and success, whether it's Portugal or Greece.

[Ultegra134]

So did I, but it honestly looks pretty pointless anymore. I started hoping for a small relief after Crude oil's value dropped, but it wasn't long lasting. Not only did oil surpass $100/barrel, but also the exchange rate of EUR/USD has gone downhill.

The worst thing in this situation is our government, it's so corrupt that's not helping its citizens. Greece has made the headlines several times in the last few months, by world renowned news websites, such as NY times, exposing our corrupt government and the scandals they're involved it. How am I supposed to not be hopeless when I'm working so many hours and seeing them not give a single damn for the country and its citizens.

Perhaps it is some kind of curse of our nations that are located in the east or south of Europe, unlike those who are a little happier with their politicians in the west (or at least it seems that way). In a conspiracy theory, some would say that the east must always be worse so that the west can benefit from it, and above all I mean human potential here. Countries like Germany need a quality workforce, and it's no wonder that over 300 000 people have emigrated from my country in the past 10 years to that country alone.

I wouldn't say that it's a conspiracy theory, the west always had the upper hand, history repeats itself, Germany was ruling Europe during WW2 and despite what happened and the damages they caused, they're still ruling, taking advantage of smaller countries, especially in the Balkan area.

It's no surprise that most countries in the Balkans are behind development compared to Western countries, while were subject to political games such as the Yugoslavian war. 

In my opinion, the Balkans should have never joined the Eurozone and should have kept their own currency (Greek Drachma, Czech Corona etc.), that way, EU wouldn't have such a large influence on them.

[Silberman]

I wouldn't say that it's a conspiracy theory, the west always had the upper hand, history repeats itself, Germany was ruling Europe during WW2 and despite what happened and the damages they caused, they're still ruling, taking advantage of smaller countries, especially in the Balkan area.

It's no surprise that most countries in the Balkans are behind development compared to Western countries, while were subject to political games such as the Yugoslavian war. 

In my opinion, the Balkans should have never joined the Eurozone and should have kept their own currency (Greek Drachma, Czech Corona etc.), that way, EU wouldn't have such a large influence on them.

There were many criticisms against the European Union back in the day, and I have always personally thought that it was a historical mistake, but it went through and now we are seeing what many people speculated on those days became true, in which a few countries will take most of the decisions and be on control while the rest of the countries will lose their independence, political identity and the ability to take their own economic decisions, it will be interesting to see if they European Union can survive intact the crisis is coming, if they do, this may make the union stronger, but if they fail, then there could be a lot of countries that will decide to leave the union for good.

[Ahli38]

maybe I can't understand the situation experienced by the OP. because in my country inflation is not too bad. or rather, the news about it seems to be missing. replaced with news of diversion so that people do not panic. but everyone is aware here that every month the price of food also starts to rise. fueled by rising fuel oil. thus making all aspects go up. But the government is good at diverting people's attention. so people feel they are fine. although the value of money has decreased slightly. but fortunately we are a producing country for foodstuffs and mining. so maybe this is why my country is less affected by inflation.

[Ultegra134]

Alright, the official statistics regarding inflation are out. According to the Hellenic Statistical Authority, inflation has slowed down to 11.1%, compared to 11.6% in July and 12.1% in June. In my opinion, the tourism sector, which is experiencing a record-breaking season is to blame for inflation's slow down. However, while this is positive news, because it could have also skyrocketed even further, it's not enough to notice any kind of difference. Goods are still becoming more and more expensive, petrol is somewhat cheaper, but certainly not enough to drive prices down. Electricity on the other hand is 100's of time more expensive than it was. We won't have tourism in the winter to slow down the inflation, what's going to happen then?

Source: https://www.ot.gr/2022/08/31/oikonomia/eurostat-sto-111-o-plithorismos-stin-ellada-ton-aygousto-sto-91-stin-eyrozoni/

P.S Couldn't find an English source for August inflation statistics