Hyper-inflation

Author
Discussion

discusdave

Original Poster:

412 posts

200 months

Tuesday 23rd March 2021
quotequote all
Hi all,

so what do the people of PH think some of my supplier's are starting to squeal about a raw material shortage and are warning me about immanent price increases across the board some are quoting up to 25% increases on PVC ,polypropylene, latex, ABS, and so on apparently EU stocks are being diverted to the US.

do we think the stuff is about to hit the fan in a big way ?

over to you PH.


toasty

7,784 posts

227 months

Tuesday 23rd March 2021
quotequote all
Most trades (builders, sparkys etc) have put their prices up by 25% or more in the last year.

I imagine pubs/restaurants will be the same when they reopen.

fuzzymonkey

423 posts

232 months

Tuesday 23rd March 2021
quotequote all
If prices of second hand cars are starting to level out or even starting to increase, it makes you start to think something is happening.

Bathroom_Security

3,470 posts

124 months

Tuesday 23rd March 2021
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fuzzymonkey said:
If prices of second hand cars are starting to level out or even starting to increase, it makes you start to think something is happening.
Do you not think thats down to the 2030 ICE sales ban? For example the JDM market at least has exploded for what I hope are obvious reasons.

No one has to pay the prices people are asking though.

Simpo Two

87,093 posts

272 months

Tuesday 23rd March 2021
quotequote all
Well that's what can happen you get dependent on imports.

rdjohn

6,371 posts

202 months

Tuesday 23rd March 2021
quotequote all
No,

What Is Hyperinflation?
Hyperinflation is a term to describe rapid, excessive, and out-of-control general price increases in an economy. While inflation is a measure of the pace of rising prices for goods and services, hyperinflation is rapidly rising inflation, typically measuring more than 50% per month.

Although hyperinflation is a rare event for developed economies, it has occurred many times throughout history in countries such as China, Germany, Russia, Hungary, and Argentina.

cheekymeerkat

154 posts

88 months

Tuesday 23rd March 2021
quotequote all
Cardboard prices are through the roof, and bubble wrap has gone up 33%. Raw materials are going up on everything. I have a compost supplier who is struggling to get the plastic pellets to make the bags to put the compost in. Timber is also shooting up, I have a supplier 60% out of stock and source much of their timber from Poland I believe. I'm waiting 4 weeks+ for cardboard boxes to be made. Honestly the admin of it all is what gets me - I can pass the cost on to some extend but with over 2,000 products, and some with 'free delivery', it's a constant game of changing prices!

Parcel distribution costs have gone up 10% as well.

Flooble

5,571 posts

107 months

Tuesday 23rd March 2021
quotequote all
All the money pumped in as stimulus has to find a home somewhere - assets, commodities, everything will go up.

105.4

4,214 posts

78 months

Tuesday 23rd March 2021
quotequote all
Carling Black Label, Fosters and SKOL are both struggling to get hold of cans to put their drinks into, (Carling with the 440’s, Fosters with the 568’s and SKOL for everything).

Some lines of Monster energy drinks are also running out.

From what I am told from reliable sources, this is due to an inability to source the cans and nothing to do with the actual brewing process.

Overall I’d conservatively estimate the price of foodstuffs and especially alcohol has risen by 20% over the last 12 months.

discusdave

Original Poster:

412 posts

200 months

Friday 10th June 2022
quotequote all
Things are really lifting off now... where will it end! Hyperinflation...

called it early maybe ?

22

2,398 posts

144 months

Friday 10th June 2022
quotequote all
Something that is £100 would cost five-figures a year later with hyperinflation. We have prices increasing with understood explanations rather than spiralling out of control. Hyperinflation it is not.

dcb

5,911 posts

272 months

Friday 10th June 2022
quotequote all
discusdave said:
Things are really lifting off now... where will it end! Hyperinflation...

called it early maybe ?
The youth of today !

Some of us remember inflation in the 1970s being 25% a year and success being
defined as it dropping to 10%.

These days, the UK youngsters are getting their knickers in a twist over rates
approaching 10%. That's nothing.

For reference, the Turkish inflation rate is 78% per year currently. That's proper inflation.

Also, wikipedia has it that hyperinflation is a *monthly* rate over 50%. That's 1300 % per year.



discusdave

Original Poster:

412 posts

200 months

Friday 10th June 2022
quotequote all
dcb said:
The youth of today !

Some of us remember inflation in the 1970s being 25% a year and success being
defined as it dropping to 10%.

These days, the UK youngsters are getting their knickers in a twist over rates
approaching 10%. That's nothing.

For reference, the Turkish inflation rate is 78% per year currently. That's proper inflation.

Also, wikipedia has it that hyperinflation is a *monthly* rate over 50%. That's 1300 % per year.
i see, i guess we just suck it up then.. nothing to see here.

LooneyTunes

7,589 posts

165 months

Friday 10th June 2022
quotequote all
dcb said:
Some of us remember inflation in the 1970s being 25% a year and success being
defined as it dropping to 10%.

These days, the UK youngsters are getting their knickers in a twist over rates
approaching 10%. That's nothing.
And interest rates in the same period were…? 10%+ for most of the 70s.

Part of the reason people have “their knickers in a twist” is due to the significant disconnect between interest rates and the current rate of inflation.

Whilst we probably won’t see hyperinflation, the OP is right to be concerned.

CubanPete

3,638 posts

195 months

Friday 10th June 2022
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discusdave said:
i see, i guess we just suck it up then.. nothing to see here.
On the plus side, house prices now will seem really cheap in a few years.

Equus

16,980 posts

108 months

Saturday 11th June 2022
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discusdave said:
do we think the stuff is about to hit the fan in a big way ?
About to?

I can only assume that you have a lousy sense of smell.

skwdenyer

17,960 posts

247 months

Sunday 12th June 2022
quotequote all
dcb said:
The youth of today !

Some of us remember inflation in the 1970s being 25% a year and success being
defined as it dropping to 10%.

These days, the UK youngsters are getting their knickers in a twist over rates
approaching 10%. That's nothing.

For reference, the Turkish inflation rate is 78% per year currently. That's proper inflation.

Also, wikipedia has it that hyperinflation is a *monthly* rate over 50%. That's 1300 % per year.
In Turkey is that it is as much about a falling currency as it is structural inflation. The Turkish Lira has lost over 2/3 of its value since 2020.

I buy from producers in Turkey. The USD prices they charge me haven't gone up very much. Turkish USD prices are not contributing significantly to my BoM inflation.

We are seeing similar effects in the UK on USD-priced imports, but the pound hasn't collapsed (yet).

Simpo Two

87,093 posts

272 months

Sunday 12th June 2022
quotequote all
skwdenyer said:
The Turkish Lira has lost over 2/3 of its value since 2020.

I buy from producers in Turkey. The USD prices they charge me haven't gone up very much.
Shouldn't they have gone down in real terms?

skwdenyer

17,960 posts

247 months

Monday 13th June 2022
quotequote all
Simpo Two said:
skwdenyer said:
The Turkish Lira has lost over 2/3 of its value since 2020.

I buy from producers in Turkey. The USD prices they charge me haven't gone up very much.
Shouldn't they have gone down in real terms?
Why? Inflation in lira is roughly matching the FX movement. Turkish minimum wage went up over 50% this year alone. The non-lira parts are all in USD already (raw materials, transport, etc) and are subject to global inflationary pressures.

Frimley111R

15,989 posts

241 months

Monday 13th June 2022
quotequote all
This thread needs to be retitled....