expert advice: Phil Chaplin | CEO | CFI Finance Group
Obtaining Finance, Inflation and Rising Interest Rates –
What you need to know! What is inflation anyway? Put simply ‘inflation’ is the rise in costs of goods and services over time. High inflation means the price of things is going up fast, low inflation and prices are going up slowly. Inflation is significantly driven by supply and demand, if demand is high and supply is low then prices will rise. When supply issues flow into the most basic commodities (think energy in the form of oil and gas) those price increases can quickly spill over into almost everything. Take food for example; as the cost of farming, shipping, refrigerating, and selling food goes up it hits everybody’s hip pocket, now people need to be paid more just to afford exactly the same groceries they bought last week. Money, in terms of what it can buy for most people, is worth less than it was a week ago.
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