Inflation rates can really change how we spend our money every day. Let’s break it down:
Rising Prices: When inflation is high, things like groceries and gas become more expensive. This means you can buy fewer items with the same amount of money.
Savings Impact: When prices go up, the money you save doesn’t stretch as far. For example, if you save £100 but inflation is at 5%, that £100 will feel more like £95 after a year.
Interest Rates Effects: Sometimes, to control inflation, central banks increase interest rates. This makes borrowing money more costly, which can affect loans for houses or cars.
Overall, inflation can put pressure on your budget and change how you handle your money every day.
Inflation rates can really change how we spend our money every day. Let’s break it down:
Rising Prices: When inflation is high, things like groceries and gas become more expensive. This means you can buy fewer items with the same amount of money.
Savings Impact: When prices go up, the money you save doesn’t stretch as far. For example, if you save £100 but inflation is at 5%, that £100 will feel more like £95 after a year.
Interest Rates Effects: Sometimes, to control inflation, central banks increase interest rates. This makes borrowing money more costly, which can affect loans for houses or cars.
Overall, inflation can put pressure on your budget and change how you handle your money every day.