How to Defend Against Inflation at 8%: Advice on Mortgage, Travel, Consumption and Transportation

Mortgage Account

Let’s call it the “Putin tax” or whatever we want: But the bloodshed that comes from energy costs drives up food, transportation, bills, and vacation itineraries. By significantly reducing the purchasing power of families. We need wise strategies to prevent savings from dwindling to last after price hikes without brakes. The June inflation figure certified by Istat, at 8% compared to the same month last year, sets the country back 36 years: to 1986. Among the incompressible expenses there is certainly a mortgage on the house. Fixed 20-year loans now cost about 45 cents more than they did at the beginning of June. This means that for a loan of 150 thousand euros for a house worth 200 thousand, an average of 649 euros is paid over 30 years instead of 605. At the moment, the increase in variable mortgages is much more modest: 15 cents and a premium over 10 euros (486 to 496). Therefore, there is a large gap in favor of variables that can narrow: For Euribor, the parameter used to determine the monthly premium for variables, the expectation is to rise after the ECB formalizes the rate increase. On July 21, the Eurotower Summit at which a decision will be made on a more restrictive monetary policy. With this increase in prices, it is necessary to calm down the economy or else the purchasing power of families will be eroded. But there is a risk of a recession.

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