The problem with inflation
Farmer's Weekly|June 17, 2022
Jannie Rossouw, visiting professor at Wits Business School at the University of the Witwatersrand, writes that sustained price increases erode consumers' spending power.
Jannie Rossouw
The problem with inflation

"Inflation is a process of sustained increases in the general price level over a period of time (typically 12 months).

Inflation can be calculated for a country, for specific regions in a country and for different income and demographic groups, such as pensioners.

These different calculations are important because the spending patterns of regions and groups differ. That means that their rates of inflation also differ. It is therefore important for each household to have a clear understanding of its own inflation rate.

A number of countries allow for the development of this improved understanding. For example, South African households can use an Internet tool such as the personal inflation calculator of Statistics South Africa. A personal inflation calculator, based on the spending patterns of households, is also available for Europe, Canada and New Zealand.

RESEARCH

The phrase describing inflation as ‘enemy number one’ is borrowed from the research done by South African businessman Dr. Anton Rupert on the worldwide inflation problem suffered in the 1970s.

He described inflation in this way due to its distortive impact on the economies of countries and the wealth and financial well-being of households.

But the word inflation has a much earlier origin. Its first use was in the US between 1830 and 1860, when the US dollar started losing value.

In short, people experience inflation as sustained price increases. Prices continue to rise and the same amount of money buys fewer goods and services over time.

WHY IS IT SO BAD?

Inflation is destructive because consumers on fixed incomes, such as pensioners, get poorer over time; the buying power of their money is eroded.

Diese Geschichte stammt aus der June 17, 2022-Ausgabe von Farmer's Weekly.

Starten Sie Ihre 7-tägige kostenlose Testversion von Magzter GOLD, um auf Tausende kuratierte Premium-Storys sowie über 8.000 Zeitschriften und Zeitungen zuzugreifen.

Diese Geschichte stammt aus der June 17, 2022-Ausgabe von Farmer's Weekly.

Starten Sie Ihre 7-tägige kostenlose Testversion von Magzter GOLD, um auf Tausende kuratierte Premium-Storys sowie über 8.000 Zeitschriften und Zeitungen zuzugreifen.

WEITERE ARTIKEL AUS FARMER'S WEEKLYAlle anzeigen
ARC names best dairy producers of the year
Farmer's Weekly

ARC names best dairy producers of the year

The Agricultural Research Council (ARC) recently announced the winners of the 2024 National Master Dairyman Awards at an event hosted by AgriExpo in Stellenbosch, Western Cape.

time-read
1 min  |
December 06, 2024
Lion breeders to give up bone stockpiles?
Farmer's Weekly

Lion breeders to give up bone stockpiles?

The Ministry of Forestry, Fisheries and the Environment issued an official notice in mid-November in which it called on lion breeders to voluntarily hand over their lion bone stockpiles to the state as soon as possible.

time-read
1 min  |
December 06, 2024
Thousands of British farmers march on parliament against inheritance tax
Farmer's Weekly

Thousands of British farmers march on parliament against inheritance tax

Thousands of UK farmers gathered in London, England, on 19 November to demand the government repeal a proposed inheritance tax on agricultural land, which they argued threatened the future of family-run farms (see page 4), Al Jazeera reported.

time-read
1 min  |
December 06, 2024
Avocado frittata with sundried tomatoes, feta and olives
Farmer's Weekly

Avocado frittata with sundried tomatoes, feta and olives

This wholesome, vibrant frittata is perfect for brunch or a light supper. Recipe and photo: The South African Avocado Growers' Association.

time-read
1 min  |
December 06, 2024
Feed, hay, and other costs are up, so it's time to get creative
Farmer's Weekly

Feed, hay, and other costs are up, so it's time to get creative

Breeders and riding schools need to explore innovative ways to generate income in order to ensure their survival, says Dr Mac.

time-read
2 Minuten  |
December 06, 2024
How to make polystyrene seedling trays last longer
Farmer's Weekly

How to make polystyrene seedling trays last longer

While thinking about how to prolong the lifespan of polystyrene seedling trays that are exposed to harsh sunlight, Bill Kerr began to wonder if a coat of paint might offer a solution.

time-read
2 Minuten  |
December 06, 2024
Living the 'culture' in agriculture
Farmer's Weekly

Living the 'culture' in agriculture

Creation Wines has won numerous awards, was ranked fourth in the World’s Best Vineyards in 2023, and more recently won the V d’Or award for the Best Brand Experience. The owners, Carolyn and Jean-Claude Martin, spoke to Glenneis Kriel about how their winery became a top tourism destination.

time-read
10+ Minuten  |
December 06, 2024
Time to take a deep breath on the slopes of the Magaliesberg
Farmer's Weekly

Time to take a deep breath on the slopes of the Magaliesberg

Around 100km from both Johannesburg and Pretoria in Gauteng and a tad over 40km from Rustenburg in North West, Farmer’s Weekly found a fine retreat on a working farm where couples may kindle their romance.

time-read
5 Minuten  |
December 06, 2024
African penguins could be extinct by 2035 how to save them
Farmer's Weekly

African penguins could be extinct by 2035 how to save them

Protecting the critically endangered African penguin is good for the environment, other animal species, and the economy, say Lorien Pichegru and Dr Alistair McInnes of Nelson Mandela University, Katrin Ludynia of the University of Cape Town, and Peter Barham of the University of Bristol in the UK.

time-read
4 Minuten  |
December 06, 2024
An urgent need to confront Nassella in SA
Farmer's Weekly

An urgent need to confront Nassella in SA

South American grass species from the genus Nassella were unwittingly introduced to South Africa over 120 years ago and continue to invade montane veld. As Mike Burgess writes, research-based action is required.

time-read
3 Minuten  |
December 06, 2024