Inflation bites: How rising prices and interest rates impact young people more than wealthy retirees
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Inflation refers to the increase in prices of goods and services. It is high right now due to excess demand and constrained supply.
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Interest rates are being raised to reduce demand and bring down inflation, but this makes mortgages more expensive.
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Wealthier retirees with assets are benefiting from high inflation and interest rates. Younger people are impacted more.
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Alternatives like increasing superannuation contributions could help but impact lower income earners.
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The RBA forecasts high inflation until 2025. Speaking with creditors early and getting financial advice can help manage the situation.