Why inflation is necessary
Rising inflation causes alarm among investors. So far in 2021, the media has been saturated with talk of rising inflation as share markets have gyrated wildly. However, the truth is that inflation is necessary for a healthy economic environment. The RBA tries to maintain an inflation target of 2-3 per cent to keep the economy growing. In this article we discuss what inflation is and why it is necessary. What is inflation? Inflation is the general rising of prices. This …