MORE INFLATION ahead due to Pay Rises Outstripping current Inflation

The Property Nomads Podcast

Rob discusses the potential impact of rising inflation on the economy, explaining that as pay rises outstrip inflation, people will demand higher compensation to cover the increased cost of living. This, in turn, leads to increased overheads for businesses, which may result in higher prices for consumers...

KEY TAKEAWAYS

• Inflation is expected to increase due to pay rises outstripping inflation in recent years.
• When pay increases exceed inflation, companies may pass on the increased costs to consumers, resulting in higher prices.
• The disparity between wage growth and inflation may lead to a vicious circle of price increases and further inflation.
• The future of interest rates is uncertain and may be influenced by government policy and decisions made by the Federal Reserve.
• Businesses that are not run efficiently may face challenges as overheads increase and costs are passed on to consumers.

BEST MOMENTS

"If those costs get passed over to the customer, that is going to be in the terms of higher prices. And then we start getting onto that slippery slope again."

"What will happen is that the consumer is likely going to be hit with even more price increases and then the vicious circle starts again."

"What is alarming is from speaking to a couple of friends and other people in various communities is the amount of people that have somehow ended up on variable mortgages by design."

"So although the BBC in this particular case is where the articles come from, although they might be trying to put a positive spin on it, actually, it's probably gonna have a negative consequence moving forward."

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ABOUT THE HOST

Rob Smallbone is the author of the Amazon best-seller Buy-To-Let: How To Get Started as well as 101 Top Property Tips and Property FAQ’s.

BOOKS

Property FAQs = https://amzn.to/3MWfcL4

Buy To Let: How To Get Started = https://amzn.to/3genjle

101 Top Property Tips = https://amzn.to/2NxuAQL

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uk property, Investment, Property, Rent, Buy to let, Investing for beginners, Money, Tax, Renting, Landlords, strategies, invest, housing, properties, portfolio, estate agents, lettings, letting, business: https://patreon.com/tpnpodcast