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Who Suffers Inflation? - Politics - Nairaland

Nairaland Forum › Nairaland General › Politics › Who Suffers Inflation? (244 Views)

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Who Suffers Inflation? by lawani(op): 10:08pm On Sep 27, 2024
Who suffers inflation?

Whatever you have built physically is out of the reach of inflation. If your national currency loses value, what you have built will rise in value in response and leave you ahead of inflation. Those who save in the national currency are therefore the most exposed to inflation and not business men who are heavily in debt. For business men, when there is inflation the value of their debts decrease.
Blue chip companies are also relatively safe from inflation and this is why it is good for pension funds, cooperative societies and investment companies to invest into blue chip companies substantially so that their exposure to inflation will be reduced.
A real business man who is well grounded in the economy will ride inflation to success.
Re: Who Suffers Inflation? by Rutherford2019: 10:19pm On Sep 27, 2024
Inflation affects salary earners most
Farmers are the least affected followed by businessmen.
Investors whether blue chips or not are one of the most affected..
For instance, someone who invested 10 naira in 2015 valued his investment 30 naira in 2024.
That's 20 naira gain but in reality he's at loss because what 10 naira can buy that time 30 naira cannot buy it now
Re: Who Suffers Inflation? by lawani(op): 10:33pm On Sep 27, 2024
Rutherford2019:
Inflation affects salary earners most
Farmers are the least affected followed by businessmen.
Investors whether blue chips or not are one of the most affected..
For instance, someone who invested 10 naira in 2015 valued his investment 30 naira in 2024.
That's 20 naira gain but in reality he's at loss because what 10 naira can buy that time 30 naira cannot buy it now
A blue chip company should rise in value when there is inflation
Re: Who Suffers Inflation? by budaatum: 1:01am On Sep 28, 2024
lawani:
A blue chip company should rise in value when there is inflation
Since they can easily ramp up price to their customers

The pricing power companies suddenly had to hike prices and pump up profits because their customers were suddenly paying whatever, thereby propagating inflation across the economy.

https://wolfstreet.com/2024/09/26/corporate-pricing-power-and-therefore-inflation-not-vanquished-says-renewed-spike-in-corporate-profits-in-most-industries/
Re: Who Suffers Inflation? by dirbreye: 1:56am On Sep 28, 2024
budaatum:
Since they can easily ramp up price to their customers
This is heavily dependent on the elasticity of the product sadly.
Re: Who Suffers Inflation? by Tochi3(m): 2:09am On Sep 28, 2024
grin grin grin

..PO, BATists, .. grin grin grin
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