Just a little bit of Friday fun.
Inflation is the single most important indicator when measuring real wealth as it will determine how much wealth is worth in terms of what it can actually buy i.e. purchasing power.
If ‘nominal’ wealth doubles over 25 years but the level of prices also doubles there is no net gain in ‘real’ wealth.
It only takes annual inflation of 2.8% to cause a doubling in prices over 25 years……