As Poslovni Dnevnik writes, Croatian mathematician Toni Milun explained the meaning of inflation in real life, practical terms, and discussed just how much it affects the purchasing power of regular people and how we might better cope with all this, as reported by N1.
In a video, Croatian mathematician Toni Milun went into more depth about the practical side of inflation which is affecting each and every one of us in some way or another.
“When compared to last year, inflation is higher than 10 percent. This means that people who earned a monethly salary of 7,000 kuna last year, and still do today, can buy on average what they could last year for 6,300 kuna now. Inflation doesn’t really mean the same thing for everyone.
People who use products which have been more affected by inflation, things which have become more expensive, such as fuel for a person who drives often, have more issues with ongoing inflation than someone who uses public transport that hasn’t risen in price. If we want our purchasing power to remain the same, then our wages should increase by these 10 percent compared to last year. If they haven’t grown by 10 percent, then we’re a little poorer,” explained Milun.
He also referred to the movement of interest rates. ”As for the interest rates, if a person has a variable interest rate, you need to check what it’s tied to. I’m talking about the period from next month onwards. Everyone with an NRS interest rate – don’t worry, you can relax for now. But if it’s Euribor, then make sure you look at the date it changes because new annuities arrive in July, it may be higher especially if you have a home loan you recently took out. It can be a few hundred kuna higher. Go to the bank, try to negotiate better terms,” Croatian mathematician Toni Milun warned.
However, Milun is convinced that we will overcome these challenging times.
“We can all become more financially literate. Educate yourself, because doing that now has become very important “, Milun advised.
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