Whats happened to all the cheap cars!!

[Dum-Dum]

Also have we considered inflation at 3% a year for 10 years is probably accounting for a 40% increase in price

Please explain this i honestly dont get it

if a car was £1000 and inflation is 3% then multiply that by 1.03 for each year. So after year 10 the same £1000 car will be worth £1304.77.

Same as the freddos issue... but with cars.

This is why if you put 100k in a bank it becomes worth less over time which is why its better off investing it aiming to at least match inflation... or in my eyes why its better to spend it as soon as you get it. Remember that time in that country where there was such rapid inflation that you would need a wheel barrow full of money to buy bread. They had to print loads of money which drove it down even more and wallpaper became so expensive you actually had more paper with the notes youd need to buy it with so people just decorated their homes with money.

Im not entirely sure why it happens or where the extra money even comes from to keep the whole thing from falling over. Its all to do with confidence in things.

£1343.91 by my count? having actually done the maths rather than guesstimated it's a 34.4% rise rather than a 40% rise.
Transport inflation for the last few years has been above the base rate of inflation. Look at the kia piccanto. I'm sure 10 years ago they were retailing at £5995, now they start at just over £9k, that's over a third rise in price.


And Sam the extra money comes from the government printing more money and putting it into circulation, it's to do in part with quantitative easing and various other things that I'm not going to try to explain.

Tom in short; inflation = shit gets more expensive over time.

Also have we considered inflation at 3% a year for 10 years is probably accounting for a 40% increase in price

maths fail

How? I didn't work it out at the time but it turns out be 34.4% rather than the 40% I guesstimated. 40% was close enough for the purposes of this thread.