Inflation Made Simple: Understanding Inflation
Inflation is one of those financial topics that can feel elusive and often misunderstood. Despite recent reports showing a decline in Consumer Price Index (CPI) numbers, many of us still haven’t felt any real relief when it comes to our day-to-day expenses. Why does this disconnect exist?
As Charles explains, inflation is primarily a monetary phenomenon, as famously stated by economist Milton Friedman. When the government prints more money than the economy can handle, inflation occurs. This episode breaks down this concept using relatable examples like apples and dollars, making it easier to grasp the impact of inflation on everyday life.
Here’s some of what we discuss in this episode:
0:00 – Intro
1:07 – Milton Friedman’s monetary phenomenon example
4:55 – Government regulation and inflation
7:38 – Compounding effects of inflation
9:20 – Planning for inflation in retirement
Money To Apples Charts
Have questions about any of the topics we covered in today's podcast? Reach out to me at 480-513-1830, or schedule a call via my calendar.