We have all felt it! The cost of living is increasing. Inflation is on the rise in Australia, but don’t let it take control of your finances! Our expert accountants are here to help you navigate these challenging economic times and find ways to maximize your wealth. So let’s understand what inflation is.
Rising inflation explained
The current high inflation in Australia is largely caused by supply chain disruptions and a strong economic recovery from the pandemic, leading to increased demand and rising prices for goods and services. Additionally, the government’s stimulus measures and low interest rates were also contributing factors. That is why the RBA spent much of 2022 attempting to rein in inflation with eight consecutive rate hikes. It is targetting an inflation range of between 2-3%.
Top tips on how to deal with rising inflation
- Track your spending and create a budget.
- Look for ways to cut expenses, such as comparing prices and shopping around.
- Consider reducing non-essential spending and focus on necessities.
- Invest in assets that tend to hold their value during inflation.
- Seek professional financial advice to help with long-term planning.
Feel free to contact our expert team at (07) 5536 3755 or contact us here about budgets and accounting advice. We are experts in making sure you are on top of your finances and cash flow during this inflationary period.