Australia's inflation rate is the highest it's been in 21 years and we're not the only country feeling the sting of rising costs.
Aussies are well aware that the cost of living is increasing. Prices of food, gas, petrol and rent have skyrocketed thanks to the inflation rate rising toWhile the Australian Bureau of Statistics reported a 2.4 per cent rise in annual wage growth for the March quarter, this has not been enough to compete with the soaring cost of living, leaving people around the country struggling.
International events such as supply chain interruptions, COVID-19 implications and the war in Ukraine saw inflation in OECD countries rise to 9.6 per cent in May compared to 9.2 per cent in April.Here's a crash course in inflation and what it looks like around the world.how much more expensive a set of goods and services has become over a certain period of time.The CPI measures the percentage change in the price of a basket of goods and services consumed by households.
Temporary changes in inflation may be caused by events like supply disruptions or seasonal sales, according to the RBA. More persistent changes in inflation generally arise when people and businesses change their expectations about future price moves, and thus start demanding higher wages or passing on cost increases to their customers to compensate for them.