Should you believe everything you read in the papers?
When we all woke up to the ‘ping’ of the Sky News Headline, I’m sure many of us said ‘so what’ but for others this is a worry. It is written like that to get that reaction.
This morning, I emailed Roger Martin-Fagg, who over my years with Property Academy has been the best in the business for an opinion & advice. He is a behavioural economist and often gets it right! Not all the time but more often than not.
The media are going overboard. Inflation is measured Year on Year so as we progress through this year, into 2023, you will see the numbers come down.
Peak month likely to be November at 13%.
This time next year we will see 5%.
Inflation is doing its job of reducing the purchasing power of the excess money in the system. Almost everybody will be finding ways to reduce their outgoings, this is reducing real demand and as the money runs out, prices will moderate, including the property market.
But there will be no repeat of 2008.
Detailed analysis in six weeks!
P.S. gas prices are high because every country is trying to fill their gas reservoirs in readiness for Winter, and Russian gas supplies have reduced by a third.