For the most part, society looks at this as being ‘out of their control’ and the numbers are as meaningful or interesting as a party-political broadcast, whilst eating last night’s cold chips.
But inflation really does matter. It wipes out your financial security and it hurts us all, well not necessarily all. Read on, I’ll try to explain it to you.
Where does inflation impact you? Cost of living, the buying power of your investments/money, the buying power of your pensions in retirement, the costs to companies of inflation-proofing your pensions, the buying power of your income, the need for staff to have extra income, and because of that, the inevitable collapse of companies, which creates unemployment and a negative feedback loop that creates extra borrowing for governments, and the potentially inevitable increase in interest rates (more cost and of course inflation).
