Basics: All You Need To Know About Inflation

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Inflation. It’s a term you’ve most likely heard at some point during your investing journey, and one that you need to understand. Given what is going on at the moment, with governments and central banks printing money, we thought it’s a good time to unpack inflation to understand how it impacts us as investors.

In this episode you will learn:

  • The definition of inflation and it’s relationship to purchasing power
  • The definition of deflation, and
  • Some crazy examples of both inflation and deflation around the world (needing a wheelbarrow of money to pay for bread!)
  • What the Consumer Price Index is
  • The main sources of money being pumped into the economy
  • What assets perform best in an inflationary environment
  • Why we might be heading into deflation, and some of the worrying signs
  • The key risks of deflation
  • Assets that perform in a deflationary environment

If you have any questions, head to Equity Mates Facebook Discussion Group and ask the Equity Mates community.

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Equity Mates is a part of the Diamantina Media Network – the home of Australia’s favourite podcasts. For more information, visit http://diamantina.com.au/

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