Inflation tells us how much prices have changed year-over-year. It’s noticeable in the cost of everyday things, for example the price of a candy bar today compared to 20 years ago. Over time, increases in inflation tend to be offset by increases in wages, since inflation and wages both tend to increase gradually.
However, a more sudden increase in inflation can cause financial stress, due to sharper increases in the cost of living. If your paycheque suddenly doesn’t stretch as far, that means it’s a good time to take a look at your personal finances.
Learn more about inflation by visiting the new GetSmartAboutMoney.ca website.