Finance · Understanding financial basics
Inflation explained: everyday economics for your money
Why do the groceries, the rent and the bus fare keep costing more? Six short lessons of everyday economics, like a short economics class built around your own money. Learn why prices rise, how a price index works, why central banks aim for about 2%, how to estimate your own inflation rate, and how to tell whether your savings are growing in real terms. Country panels for Australia, the UK and the US.
About this course
everyday economics for your money.
Starter · About 1 hour of learning · 6 lessons · 13 quick checks · 1 download
Who it's for
Adults in Australia, the UK, the US and elsewhere who want a plain-English grounding in everyday economics: why prices rise and what inflation means for their own money.
How it works
6 guided lessons in your browser, with worked examples, exercises and a quick check after each lesson. Progress is saved in this browser only, and you can restart at any time.
Sources we rely on
23 published sources, mostly regulators and official bodies, listed below so you can check the original guidance yourself.
By the end you can
- Explain inflation, deflation and disinflation, and tell one price rise from inflation
- Calculate a weighted inflation rate and read a price index correctly
- State the inflation targets in Australia, the UK and the US and explain how interest rates are used
- Estimate your personal inflation rate and the real return on savings
- Check an inflation headline and spot a misleading “beat inflation” offer
Downloads
- Inflation worksheet: personal rate, real return and headline check .xlsxWork out your personal inflation rate, the real return on savings and a goal’s future buying power. Includes the Okafor worked example.
Rules by country
Learning time
About 1 hour of learning. May count towards your CPD or professional development; check your professional body's rules. Estimated from reading time, exercises, quick checks and downloads.
Sources
Check the originals.
Drafted with AI assistance and run through automated quality and source checks. How these courses are made. Spotted an error or out-of-date rule? Send a correction.
General information only, not financial advice. We don't recommend financial products.
- Explainer: Inflation and its measurement · Reserve Bank of Australia
- Explainer: Australia’s inflation target · Reserve Bank of Australia
- Consumer Price Index, Australia (latest and future releases) · Australian Bureau of Statistics
- Savings goals calculator (assumptions) · Moneysmart (ASIC, Australia)
- Develop an investing plan (investment risks) · Moneysmart (ASIC, Australia)
- Term deposits (term deposit scams) · Moneysmart (ASIC, Australia)
- What is inflation? · Bank of England (UK)
- Inflation and the 2% target · Bank of England (UK)
- Inflation and price indices · Office for National Statistics (UK)
- Shopping prices comparison tool · Office for National Statistics (UK)
- What is inflation, and how does the Federal Reserve evaluate changes in the rate of inflation? · Board of Governors of the Federal Reserve System (US)
- Why does the Federal Reserve aim for inflation of 2 percent over the longer run? · Board of Governors of the Federal Reserve System (US)
- Consumer Price Index (CPI) home · US Bureau of Labor Statistics
- How to use the Consumer Price Index for escalation / CPI math calculations (fact sheet) · US Bureau of Labor Statistics
- How to check a firm or individual is authorised · Financial Conduct Authority (UK)
- Financial advisers register · Moneysmart (ASIC, Australia)
- TPB Register: check if your tax or BAS agent is registered · Tax Practitioners Board (Australia)
- National Debt Helpline · National Debt Helpline (Australia)
- Australian Financial Complaints Authority · AFCA (Australia)
- Get free debt advice · GOV.UK
- Working with an investment professional · Investor.gov (US Securities and Exchange Commission)
- Choosing a tax professional · Internal Revenue Service (US)
- What is credit counseling? · Consumer Financial Protection Bureau (US)
Publisher
Who publishes this course.
Published by trainyourself.org, a trading name of Combine TRS Pty Ltd (ABN 42 112 983 678), Brisbane, Australia.
How it's made: drafted with AI assistance from published regulator, government and official money guidance, then run through automated quality checks against our course depth standard and automated source checks that match each rule to its official source, listed above. The course guide is an AI presenter and is labelled as one. Read how these courses are made.
Last updated:
General information only, not financial, credit, tax or legal advice. Spotted an error or an out-of-date rule? Send us a correction.
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