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Who Wins and Who Loses If Inflation Shoots Up

Wednesday, March 17, 2010 - 8:00 AM
As you might expect, savers are hurt most if inflation rises substantially, especially those with long-term CDs. This Bankrate.com article reviews not only who are hurt by high inflation, but also who would benefit. The most to benefit are those with fixed-rate debt like mortgages and auto loans.
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Ken TuminKen Tumin5,469 posts since
Nov 29, 2009
Rep Points: 125,077
1. Wednesday, March 17, 2010 - 5:45 PM
Just about everyone loses with high inflation (not unless you are so rich that price inflation doesn't impact you).  People with fixed term debt don't really benefit from high inflation.  They have to still pay the higher priced items in their daily budget (food, gas, utilities, etc.).  They still pay out the same amount each month for the debt repayment.  They only "benefit" by not having to see that monthly repayment amount increase.  And you have to weigh that against the time when interest rates were low and when they paid much less every month versus having a fixed rate.
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AnonymousAnonymous2,282 posts since
May 9, 2010
Rep Points: 3,919
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