Inflation (CPI) Explained: Why Your Money Buys Less Over Time

Inflation in practice

Inflation is the general rise in prices over time. It quietly reduces purchasing power — what R10,000 buys today is less in the future.

Why it matters

• Long-term goals need higher future targets.
• Salary increases may not keep up.
• Savings returns should be compared to inflation.

Bottom line

Use ranges (e.g., 4%, 6%, 8%) to plan with buffers rather than a single guess.

Quick recap

• Compare scenarios side-by-side using tools.
• Build buffers to survive rate and cost shocks.
• Confirm exact numbers and rules with official sources.

Suggested next step

Open Rate-Change Impact and run a +1% and +2% scenario. Then use Budget Buffer to set a buffer target that fits your income.