Cost of living rising : how do you feel it ?

Thank you for your replies !

Indeed, all we can do is hope for a best future and (if it's possible) do our best to save money. Well, some economists say that it's counterproductive but what can we do ?

Unfortunately, inflation seems to be here to stay.

- @Mikki Beru

Inflation is here to stay? Nope. Most of the world has had very low inflation in recent years. The cause of the inflation now is primarily linked to Putin's war. When it is over then most of the inflationary pressures will subside.

- @TominStuttgart

I stopped using credit in 2006.

cccmedia

- @cccmedia

The Stuttgart analysis completely ignores

how Central Banks have been contributing to

inflation for years by excessive printing

of fiat money.  (This long predates the

current Ukraine War.)

This produces too much money circulating

in various countries chasing too few goods.

The result is higher consumer prices;

ipso facto, inflation.

Under a recent president's four-year term,

the world's largest economy, the U.S.,

produced the three largest deficits

in the nation's history.   The Stuttgart

analysis ignores this, underplaying the

facts behind ongoing inflationary pressures.

Putin's war contributes to the problematic

situation, but is not the lone factor.

cccmedia

- @cccmedia

There has been ongoing discussion as to

the possible return to an asset-backed

currency (or currencies) due to the

current economic realities, including

inflation.

Fiat currencies replaced less inflation-prone

currencies after Richard Nixon took the

U.S. off the gold standard in the 70's.

This has made the topic of fiat currencies

relevant again.

Some countries in the Eastern hemisphere

have been trading amongst

themselves in currencies that are

not the U.S. Dollar, the world's longtime

"reserve" currency.

cccmedia

- @cccmedia

@TominStuttgart As someone who has a degree in Economics I don't understand your attitude towards the pretty moderate views I read here on inflation and the role of central banks in partially causing it. The effect money supply has on the value of money is an ancient theory. Even the Cantillon effect, describing how money supply mostly affects those who are last to get their hands on the newly printed money, originates from the 18th century. That relationship is not a new thing at all. The Russia-Ukraine war played a role as well, as did the sanctions that our leaders in Europe chose for.

But most of all, inflation is cyclical. Low commodity prices lead to underinvestment in production, which then drives up prices, leading to overinvestment in production, which then leads prices to drop again. We've had a decade of suppressed commodity prices, leading to underinvestment in fossil fuels. Add to that the clean energy policy that requires enormous amounts of new minerals and raw materials and all this contributes to inflation.

- @Jk1976

I stopped using credit in 2006. 
- @cccmedia

As someone who get a degree in finance I can only laugh at such conspiracy nonsense.

- @TominStuttgart

Inflation is: An increase in the volume of money and credit relative to available goods and services resulting in a continuous rise in the general price level.

Geldentwertung durch starke Ausweitung des Geldumlaufs ohne entsprechende Erhöhung der Produktion.