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The Times: 'brace Yourself For Inflation Horror'

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http://www.timesonline.co.uk/tol/money/consumer_affairs/article7133572.ece

SAVERS and consumers are suffering the worst inflation since 1991. The retail prices index (RPI), which includes the cost of housing, soared from 4.4% to 5.3% in April, it was disclosed this week — its highest level in 19 years.

Savers are being hammered from all sides with £1 billion wasting away in accounts that do not pay enough interest to keep up with rising prices, according to research by Candidmoney, the personal finance website. To compound this, hundreds of thousands of people are also languishing in “legacy accounts” which pay next to no interest at all.

Someone who pays income tax at 50% must now earn at least 10.6% interest on their savings just to break even. A 40% taxpayer must earn 8.8%, while a basic-rate taxpayer needs about 6.6%. There are currently no accounts paying this level of interest, unless you fixed at this rate in previous years.

yup, seems we're all getting poorer very quickly, especially the higher-rate payers amongst us. Index-linked savings certificate, anyone?

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Guest absolutezero

http://www.timesonline.co.uk/tol/money/consumer_affairs/article7133572.ece

yup, seems we're all getting poorer very quickly, especially the higher-rate payers amongst us. Index-linked savings certificate, anyone?

But... But... The BoE says inflation will drop from its current level....

On a more serious note, did anyone actually believe that inflation would NOT be the end result?

I'd not be too surprised if NS&I stop offering the index linked certificates. :(

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Guest absolutezero

This is not the end.

Inflation is the end until everything is re-set and then it starts all over again.

We never learn.

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Inflation is the end until everything is re-set and then it starts all over again.

We never learn.

they can have as much inflation as they like as long as asset prices are deflating im as happy as Larry

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Inflation is the end until everything is re-set and then it starts all over again.

We never learn.

many on here still believe deflation is the outcome. many on here with large sums on deposit.........................Savers are the sacrificial lambs, the prudent are going to get screwed to save the feckless...................How sick?

Leveraged money at 4-5% is looking a pretty good deal, isn't it?

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Guest absolutezero

many on here still believe deflation is the outcome. many on here with large sums on deposit.........................Savers are the sacrificial lambs, the prudent are going to get screwed to save the feckless...................How sick?

Leveraged money at 4-5% is looking a pretty good deal, isn't it?

I'd not say leveraged, but for now the NS&I index linking certificate is a good idea (but I expect those to be withdrawn once inflation takes hold). Failing that gold - oops off to the Gold forum - and high yielding shares. And cross your fingers.

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I'd not say leveraged, but for now the NS&I index linking certificate is a good idea (but I expect those to be withdrawn once inflation takes hold). Failing that gold - oops off to the Gold forum - and high yielding shares. And cross your fingers.

If they are withdrawn I'll eat my hat. What they can do is not make any new issues, or create new issues with lower bonus interest, which will reduce take-up.

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Remote farmland with fresh water, enough food for 5 years, guns and ammunition?

60 million humans.

1 predator state.

Protection is not getting into htis mess in the first place. After that, triage.

Shiny metals and holing up somewhere away from the world won't help you when there are riots, pogroms, blackouts and a general collapse. You are much better off being poor in a city and part of the mob. Survival chances much, much higher.

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60 million humans.

1 predator state.

Protection is not getting into htis mess in the first place. After that, triage.

Shiny metals and holing up somewhere away from the world won't help you when there are riots, pogroms, blackouts and a general collapse. You are much better off being poor in a city and part of the mob. Survival chances much, much higher.

Sounds like a hoot, where do I sign?

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Protect yourselves while there is still time.

The time for protection was pre-Northern Rock. The information was all there, but most people were conditioned to listen to the VIs.

Aligning your finances, STRing, and taking advantage of the bleeding obvious fact that 'trees don't grow to the sky' back then that would have been protection.

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There is no protection.

If the worst happens then I would definitely agree with that.

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The US is in deflation therefore we all will be.

Should be correct although we have trashed our currency, so as long as it does'nt get trashed anymore when the current fall filters through inflation should start to fall, i guess thats what the BOE are pinning their hopes on, time will tell.

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http://www.timesonline.co.uk/tol/money/consumer_affairs/article7133572.ece

yup, seems we're all getting poorer very quickly, especially the higher-rate payers amongst us. Index-linked savings certificate, anyone?

We were talking about taking these out about 3 years ago, must be coming up to maturity about now...many I recall did so...further down the line, some were beginning to regret it....turned out not so bad after all....is it because the QE is starting to make some impact, to cook the books maybe some more will be required. ;)

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SAVERS and consumers are suffering the worst inflation since 1991. The retail prices index (RPI), which includes the cost of housing, soared from 4.4% to 5.3% in April, it was disclosed this week — its highest level in 19 years.

Excuse me, haven't house prices been rising recently?

And where do we predict house prices are headed soon?

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Should be correct although we have trashed our currency, so as long as it does'nt get trashed anymore when the current fall filters through inflation should start to fall, i guess thats what the BOE are pinning their hopes on, time will tell.

Past tense. Camlegg are taking action about that.

Edited by Killer Bunny

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Excuse me, haven't house prices been rising recently?

And where do we predict house prices are headed soon?

No more excessive HPI those days are over...house prices are not increasing in real terms, one or two triggers will see them fall back to reality. ;)

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  • 259 Brexit, House prices and Summer 2020

    1. 1. Including the effects Brexit, where do you think average UK house prices will be relative to now in June 2020?


      • down 5% +
      • down 2.5%
      • Even
      • up 2.5%
      • up 5%



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