Inflation at highest in three years

[David Cochrane]

Inflation rose by more than 1% in February, bringing the yearly rate of inflation to its highest point in almost three years. According to the Central Statistics Office the rise in inflation is mainly because of fuel, electricity, health and education costs. The CSO says transport costs increased with higher prices for petrol and diesel and higher air fares. Health costs rose due to higher doctors' fees. - RTÉ News

With SSIAs due to mature shortly, is inflation going to sky rocket? And if so, what will the resulting impact be?

[JCSkinner]

Yes, and nasty.

[smiffy]

With SSIAs due to mature shortly, is inflation going to sky rocket? And if so, what will the resulting impact be?

I'm not sure. Wouldn't it depend on what people decide to spend the SSIA on? Certainly you might expect to see an effect on the price of houses, more significant at the lower end of the market, given the amounts of money involved. However, if the money is mostly spent on 'big ticket' items (cars, home improvements etc.) will it necessarily impact that severely on inflation as measured by the CPI?

I dunno, I'm no economist. Maybe someone with a better understanding of how inflation works has a clearer explanation.

[morryah]

With SSIAs due to mature shortly, is inflation going to sky rocket? And if so, what will the resulting impact be?

I dunno, I'm no economist. Maybe someone with a better understanding of how inflation works has a clearer explanation.

No it won't 'skyrocket' but will continue to go up as long as people feel that they have money or, more correctly in this case, money on the horizon. The inflation we have at the moment already reflects future expectation of foreseeable cash i.e. SSIA even though not received yet. It's being spent as we speak, partly accounting for high inflation.

The impact of actual less money, or less money on the horizon (interest rate rises) will dampen this as soon as it hits home fully.

Fingers crossed.