Inflation, the rate at which the price of goods and services rises year-on-year, has been rising rapidly since late 2021. This has contributed to rises in the cost of living, because people need more money to be able to buy the same amount of goods.
When the inflation rate outstrips your wage growth, you lose money in real terms, as you need to spend a higher proportion of your wages to buy the same goods. When your wage grows faster than prices, you have gained money in real terms, effectively enjoying a higher standard of living.
Use our calculator to find out what your salary would need to increase by to match rising inflation.
Note: This interactive is an illustrative example and should not be used to make financial decisions.
For more information, contact: email@example.com