“Dishi Rishi” does it again; not half price meals this time, but a promise to halve inflation by the end of 2023!
Should we care and why? 🤷♀️
Inflation affects the price of everything around us! 💯
Everyone is being squeezed, however on a more fundamental business level when recently looking at a new commercial deal I needed to go back and question inflation and how it will impact returns. 😖 The Bank of England has a handy “inflation calculator” which uses the Consumer Price Index (CPI) if you have nothing better to do on a mid-week work day, check it out……👍
I am more interested in the ONS – Office of National Statistics records, a truly substantive amount of information and data if you have the patience and time to look! 💡
https://www.ons.gov.uk/economy/inflationandpriceindices/timeseries/l55o/mm23
Headlines:
👉 CPIH – Consumer Prices Index, including owner occupier’s housing costs – 20 years 2000 to 2019 – the average across 20 years is 2%.
👉 Q2 2021 saw the first peak above average.
👉 2021 was recorded as 2.5% across the year, so only just above the 20-year average.
👉 It gets interesting in 2022 for the 11 months to November with an average is 7.8%.
👉 With November 22 at 9.3%
So why care?
💪 In my mind, property is a long game, understanding the market is just one aspect of running a sound business!
📈 The current sensational headlines, doom and gloom, and inflammatory press do little to help in the world of property.
🔍 Think big picture and long term, for then can you formulate and evaluate where you are; and where you want to get to.
