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It's still more complicated than this though, isn't it. Our inflation numbers are essentially polled perceptions of how much average prices rise. Depending on y
by instagraham 4y ago
It's still more complicated than this though, isn't it. Our inflation numbers are essentially polled perceptions of how much average prices rise. Depending on your lifestyle and what you spend on, you may not necessarily spend as much more per month as inflation percentages suggest.
A family living cheque to cheque will feel the burn a lot more since the majority of their purchases go to groceries and things that do go up with inflation. But a billionaire whose cash expense is marginal compared to their worth probably wouldn't notice - or have cause to care.
For example, if your liquid cash is going to pay things that are not rising in price, but your other cash is in a savings account earning interest, wouldn't you be relatively less affected by inflation?