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How inflation is causing your money to shrink
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The widespread inability to recognize what money is really worth is known as money illusion.
PHOTO: BT FILE
Jeff Sommer
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Rising prices have made people grumpy. They have depressed consumer confidence, despite a growing economy and low unemployment.
But exactly how inflation is hurting, helping and confusing people is hard to understand. Everyone knows that the cost of living has increased. Yet unless you are constantly pulling out a calculator, you are unlikely to know whether your wages are keeping up with inflation, whether the stock market has actually hit a real peak or whether a lottery jackpot is as sweet as the marketers claim.
