Inflation - is anyone noticing it?

Discussion in 'Property Market Economics' started by Codie, 26th Feb, 2021.

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  1. Codie

    Codie Well-Known Member

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    Inflation is crazy right now, in our own business we are seeing raw materials increasing by nearly 100% in only 3-6 months, everything from raw earths, TI02, NPG etc

    Our biggest customers supply the Aus market with aluminium and steel, the biggest aluminium presses are 2 months behind, all window/door companies are the busiest they have ever been and are all putting price rises through.

    We went in March, and can’t see how we don’t go for another price rise again soon.

    in the last few months to put price rises through month after month, is absolutely mad. But we all have no choice.
     
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  2. Toucan

    Toucan Well-Known Member

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    I've noticed my weekly shopping has gone up about $25-$50 in the last few weeks.. And have noticed many prices increases in Coles, Woolies etc.
     
  3. Shazz@

    Shazz@ Well-Known Member

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    Lamb cutlets -$38/kg. Used to be $25/kg pre Covid.
     
  4. skater

    skater Well-Known Member

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    @Sackie is 100% right. You know how I know? Because I was dirt poor. Now retired, living off of my investments.
     
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  5. Sackie

    Sackie Well-Known Member

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    @skater I've noticed something really telling over the years . Folks who are very successful in all fields of life, be it investing or any other field, even when they sometimes may have legitimate and totally justified reasons to complain and no one would fault them for it, even in those situations the really successful folks STILL 99% of the time won't whinge and look for reasons why they couldn't do x, y and z.

    You're just one example of those people. According to your own admission, you went from dirt poor to now the enviable position of living off your investments.
     
    Last edited: 16th Apr, 2021
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  6. albanga

    albanga Well-Known Member

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    If there is inflation on products my wife hasn’t noticed. Seems to be more packages being delivered than During Covid.
     
  7. Angel

    Angel Well-Known Member

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    We are about to order the steel for the new roof on our rusty old bus :eek:
     
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  8. Lizzie

    Lizzie Well-Known Member

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    Fruit and veges are a combo of drought, fire, flood and now lack of workers

    Meat is due to drought, fire, flood and increased worldwide demand due to African Swine Flu wiping out most of the pig (main protein) population in Asia

    Building supplies is due to demand (OMG, who isn't building or renovating - my trades are working 6/7 days a week and still can't keep up) and lack of international shipping coming from Asia to Australia.

    Furniture and fitting - again, lack of shipping/increased shipping costs/demand (as I'm refurnishing the new house). Bed frame I wanted was a "don't know when we'll have it" so had to change - bookshelves will arrive some time in June. Basically, if it's not currently in the country then it's anyone's guess

    Insurance due to increases in major events - drought, fire, flood, wind - and even poorer prognosis due to climate change

    Health insurance due to aging population and young people pulling out of private insurance

    University fees - as they try and claw back losses from lack of overseas students

    Cars - already covered

    Houses - no explanation needed

    I haven't noticed whether rates, electricity and water have gone up ... but happy that my loan repayments are paying off more loan than interest
     
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  9. John_BridgeToBricks

    John_BridgeToBricks Buyer's Agent Business Member

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    The economist Keynes (I am not a fan) did have one amazing insight into inflation, with this famous quote:

    "There is no subtler, no surer means of overturning the existing basis of society than to debauch the currency. The process engages all the hidden forces of economic law on the side of destruction, and does it in a manner which not one man in a million is able to diagnose...."

    Inflation is a tax on those people who don't understand what it is.

    It is quite true that low interest rates (inflation) is a wealth re-distribution away from salary earners, and towards governments and asset owners.

    Under a pure capitalist system, the rich get richer, and the poor get richer faster. This is because savings and good behaviours gets rewarded. Savings have value under a capitalist system, and savings is a path to the middle and upper classes.

    But when central banks intervene and markets are manipulated, the rich get richer, and the poor get left behind. And the reason for this, is that in a central banking system with inflation, there is no way to save yourself out of your current state. Saving makes your poorer.

    It is pernicious, but "only one man in a million" can see it.
     
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  10. skater

    skater Well-Known Member

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    LOL! Better watch out, with talk like that, I won't be able to get my head out of the doorway. :p

    In all seriousness though, everyone whinges at times. It's just that some things you have to be pragmatic about, and say "How can I?" instead of "I can't". And then have the courage to follow through.
     
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  11. MTR

    MTR Well-Known Member

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    I have not noticed the price of wine go up.... :p
     
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  12. Gen-Y

    Gen-Y Well-Known Member

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    I leave my black current juice long enough it will become wine. :rolleyes:
     
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  13. Gen-Y

    Gen-Y Well-Known Member

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    I saw that coming since 2008 after what FED have done. The pendulum have forever shifted from that day forward.
     
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  14. John_BridgeToBricks

    John_BridgeToBricks Buyer's Agent Business Member

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    Yep. It actually changed forever in August 1971.
     
  15. Sackie

    Sackie Well-Known Member

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    True, myself included. Just not about the really important things in life.
     
  16. Gen-Y

    Gen-Y Well-Known Member

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    I wasn't alive back then 1971. Can only take the words of someone in the text book or publication.
    But 2008 was the first time I saw it with my 2 eyes as I am in the workforce working for a living.
    First hand experience is a forever moment you will carry it till the day you die.
    example like this pandemic we are in right now.
     
  17. John_BridgeToBricks

    John_BridgeToBricks Buyer's Agent Business Member

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    True true, I wasn't alive in 1971 either. But it is the year we went off the gold standard. It meant currency had no intrinsic value, and it meant interest rates could be manipulated. Until then, central banks existed, but they were in the straight jacket that gold imposed upon them. Since then, no monetary discipline. Root cause of many of the problems since.
     
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  18. The Prestige

    The Prestige Well-Known Member

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    Wonder how many years untill a house for a Million sounds cheap..

    Here is a fantastic YouTube channel that explains the theme of this thread.

     
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  19. Empire

    Empire Well-Known Member

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    I never bought a brand new car due to depreciation but if inflation is the name of the game for the next few years I'm thinking of pulling the trigger.
     
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  20. George Smiley

    George Smiley Well-Known Member

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    It was mentioned by someone in the 'Your ideas on how to improve Australia' thread that more financial/economic literacy needs to be taught in high schools. It's stuff like this that should be firmly in the curriculum because when it's well written, as your posts are, it illuminates a subject often derived as bland but is anything but and affects us all.