On... Inflation is Bad?
Is inflation bad or good? Maybe inflation is neither good nor bad. Sure, generally it is considered bad as the costs of living keeps going up. As time goes by, your purchasing power is decreased, eaten up by inflation. A good example of this is the Big Mac price inflation as reported in the Visual Capitalist website . A Big Mac in Australia costs 2.27 AUD in 2004 and 4.51 AUD in 2022, a price increase of 98%. So, the price of Big Mac has gone up 98% in that time frame. Therefore inflation must be bad right? Well, not so fast. How about other things like property or stocks? Those things have gone up in price as well. Average house prices have gone from 539k AUD in 2014 to 993k AUD in 2023. I know average house prices is not really the best number to use because there are too many factors that govern the price of property ( such as location, type of house, etc.. ) but we know generally it has gone up. Well, then if the price of house has gone up, its bad if you want to buy a house ...