Less cash to splash: despite the spin, there’s nothing transient about inflation | Satyajit Das

With debt rising and prices spiralling up, households are going to find it harder to fork out for the necessities, let alone any luxuries, and politicians are worried

Households now face a reduction in spending power, unless after-tax wage increases match accelerating price rises.

In Australia, the September 2021 quarter consumer price index rose 0.8%, or 3% over the year. In the US, the corresponding measure has reached 6.2%, the highest in nearly 30 years. Official figures probably understate the true extent of cost-of-living increases.