Is there any law that says the corporate return on equity capital can not adjust itself upward in response to a permanently
higher average rate of inflation?
Not exact matches
«Employment
rates for Darden graduates are
high [94 % for the class
of 2014] and the
average starting salary is up 12 % since 2010, well ahead
of inflation.»
According to Genworth Financial's Cost
of Care Survey for 2017, the annual median cost
of services increased by an
average of 4.5 percent in 2017 from the prior year, the second -
highest year - over-year increase since the study began in 2004 and nearly three times the overall
rate of inflation.
As usual, I don't place too much emphasis on this sort
of forecast, but to the extent that I make any comments at all about the outlook for 2006, the bottom line is this: 1) we can't rule out modest potential for stock appreciation, which would require the maintenance or expansion
of already
high price / peak earnings multiples; 2) we also should recognize an uncomfortably large potential for market losses, particularly given that the current bull market has now outlived the median and
average bull, yet at
higher valuations than most bulls have achieved, a flat yield curve with rising interest
rate pressures, an extended period
of internal divergence as measured by breadth and other market action, and complacency at best and excessive bullishness at worst, as measured by various sentiment indicators; 3) there is a moderate but still not compelling risk
of an oncoming recession, which would become more
of a factor if we observe a substantial widening
of credit spreads and weakness in the ISM Purchasing Managers Index in the months ahead, and; 4) there remains substantial potential for U.S. dollar weakness coupled with «unexpectedly» persistent
inflation pressures, particularly if we do observe economic weakness.
As Chart 2 shows, policy
rates in Canada have on
average been only 0.25 %
higher than the US (using quarterly observations) since the introduction
of inflation targeting from the Bank
of Canada in 1992.
Our 4.89 % growth
rate easily beat the 2017
average inflation rate of 2.12 % and even the
highest month
of inflation in February 2017 when
inflation hit 2.7 %.
Similarly, in all but one
of the earlier widenings, Australia's
inflation rate was
higher than the world
average, and again on two occasions, we were running a significant budget deficit.
Other English - speaking countries with a long - term history
of high inflation — such as Canada, the UK and New Zealand — also have long - term real interest
rates higher than the
average.
Despite a small decline in May, consumer confidence for the first five months
of 2015 has been at a
higher average level than at any time since May 2004.2 A relatively low unemployment
rate and moderate
inflation have helped maintain consumers» upbeat mood.
The Empire Center's Ken Girardin: «School budgets were approved at a record -
high rate of 99.3 percent, adding to evidence that districts can live within a property tax cap set at either 2 percent or the prior year's
average rate of inflation, whichever is less.»
Five subgroups
of the food and non-alcoholic beverages group recorded
inflation rates higher than the group's
average rate of 9.3 percent.
If the initial cap is set
high enough, and allows for a
rate of inflation based on actual medical costs, which is
higher than the
average rate of inflation, then the state could be able to meet its costs to cover health care for people on Medicaid who obtained coverage under Obamacare.
He says in the 30 years preceding the tax cap, school property taxes rose at an
average of 6 percent a year, or twice the
rate of inflation, and
higher than the
rate of the state income tax.
If the initial cap is set
high enough, and allows for a
rate of inflation based on actual medical costs (which is
higher than the
average rate of inflation), New York could cover health care for Medicaid patients who obtained coverage under Obamacare.
If the interest
rates on your other debt - car or student loan or mortgage - is
higher than what you could earn by saving or investing (consider that the
average annual
inflation - adjusted historical return
of the U.S. stock market is just over 6 %), you'd be wise to pay that down first too.
Nor are they
high compared with the historical
rate of inflation - which on a year - over-year basis has
averaged 3.7 percent since 1950.
For the other part
of your question,
inflation is an annualized percentage, so an
inflation rate of 12 % means prices are 12 %
higher than they were a year ago, so if you extrapolate that linear trend, prices will rise (again, on
average) 1 % in a month.
For households in the top 1 percent
of the income distribution,
inflation - adjusted after - tax income grew at an
average rate of about 3 percent per year, making that income 192 percent
higher in 2013 than it was in 1979 for those households.
At the end
of 2017, the US
inflation rate was 2.2 % — significantly
higher than the 0.7 % for year - end 2015 but still below its long - term
average of 3 %.
Inflation Rate in the United States
averaged 3.27 percent from 1914 until 2018, reaching an all time
high of 23.70 percent in June
of 1920 and a record low
of -15.80 percent in June
of 1921.
By the end
of the decade the
average 10 - year note yield was just
high enough to cover the
average inflation rate.
It includes a lump - sum payment that is adjusted each year for
inflation ($ 21,783.34 for 1998), plus the greater
of half
of your
high - 3
average pay, or half
of your annual
rate of pay at death.
A thirty year mortgage is a great thing at these
rates (I wish I could get a 50 year mortgage), especially if
inflation returns to its historical
averages of 3 — 4 % or
higher, and if you can invest the difference between the monthly payments for the 15 and 30 year mortgage and earn more than 3.88 % on that money you will be much better off than if you'd gotten a 15 year mortgage.
49 Rising Energy Costs for Consumers
Average annual household utility bills have increased 48 % since 1980 (adjusted for inflation)-- Add in today's average annual gasoline budget per household and today's estimated annual home energy budget is over $ 3,800 Electricity costs continue to rise, with some utilities requesting rate increases of 35 % or more Spending on electricity is the highest share of total consumer spending since the energy crisis of 2000 Energy consumption has been rising along with costs — Electricity consumed by the typical American household has more than doubled since 1980 and is expected to increase another 20 %
Average annual household utility bills have increased 48 % since 1980 (adjusted for
inflation)-- Add in today's
average annual gasoline budget per household and today's estimated annual home energy budget is over $ 3,800 Electricity costs continue to rise, with some utilities requesting rate increases of 35 % or more Spending on electricity is the highest share of total consumer spending since the energy crisis of 2000 Energy consumption has been rising along with costs — Electricity consumed by the typical American household has more than doubled since 1980 and is expected to increase another 20 %
average annual gasoline budget per household and today's estimated annual home energy budget is over $ 3,800 Electricity costs continue to rise, with some utilities requesting
rate increases
of 35 % or more Spending on electricity is the
highest share
of total consumer spending since the energy crisis
of 2000 Energy consumption has been rising along with costs — Electricity consumed by the typical American household has more than doubled since 1980 and is expected to increase another 20 % by 2015
The FNB House Price Index revealed a 7.4 % year - on - year national growth for the month
of June, which was slightly
higher than the 7.2 %
rate recorded for May, «extending the recent mild accelerating trend in
average house price
inflation to 5 months».
Godsoe compared last year's predictions with the final results for the year and noted that listings and sales were down, as predicted, but the
average sale price rose eight percent, which was considerably
higher than the prediction
of slightly above the
rate of inflation.