How Does Inflation Affect My Life?
Inflation adversely affects your standard of living. The ever increasing prices mean that you would be required to pay more than the cost of the goods or services. If your income increases slowly, the prices of the commodities increase at a greater pace. Inflation doesn’t affect everything the same way. The gas prices could be doubled, at the same time as your property value would decrease. Therefore financial planning becomes extremely difficult. It is also bad for retirement planning, since you would have to pay higher in order to achieve the same standard of life. Inflation also regulates the interest rates on our loan. Source: Lån Guiden, Swed.