Jump to content
House Price Crash Forum
Sign in to follow this  
Last Hun Standing

Long Term Inflation Rate Expectations - 6.6%?

Recommended Posts

An article in the Telegraph got me thinking.


"The group must contribute up to £750m annually to fund the scheme and reduce the £5.6bn deficit as the purchasing power of the sum will decline with time. A £750m payment in 17 years' time, for example, will be worth about £250m in today's money."

If I do the maths correctly I make the implied inflation rate average for 17 years around 6.66% annually, to convert £750m to £250m in 17 years time.

i.e. 1.066^17 * 250 = 750.

Looks like they don't believe in the miracle economy and the BoE's independence either then....

Share this post

Link to post
Share on other sites

Join the conversation

You can post now and register later. If you have an account, sign in now to post with your account.

Reply to this topic...

×   Pasted as rich text.   Paste as plain text instead

  Only 75 emoji are allowed.

×   Your link has been automatically embedded.   Display as a link instead

×   Your previous content has been restored.   Clear editor

×   You cannot paste images directly. Upload or insert images from URL.

Sign in to follow this  

  • Recently Browsing   0 members

    No registered users viewing this page.

  • 302 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%

  • Create New...

Important Information

We have placed cookies on your device to help make this website better. You can adjust your cookie settings, otherwise we'll assume you're okay to continue.