Inflation is a much talked-about topic in Australia at the moment. Interest rates are going up and the Reserve Bank is blaming inflation.
Wages, food, rent and petrol are all getting more expensive, no doubt about it.
Whether raising interest rates is the appropriate economic remedy remains debatable. I can’t see the logic myself, because it just adds to the cost of lending and housing, thereby stimulating the inflationary environment.
Anyhow, some things do get cheaper. I’ve noticed over several years that computers and electrical goods have become much more affordable.
I bought a wireless modem router today for $99. I bought room heaters at Bunnings yesterday for $42.
These are large powerful electric heaters that warm a whole room. I’m not sure yet how much power they burn, but they’re very effective and much cheaper than the “oil” heaters we bought previously.
Inflation is an untamed beast and I can’t predict what will happen. I just hope there’s a rollercoaster and some prices come down.
