Flourish - Latest Edition - Flipbook - Page 53
This is not just an
Australian problem
The same pressure is
playing out globally.
The Organisation for
Economic Co-operation
and Development (OECD)
reported that headline
in昀氀ation across OECD
countries was 3.4 per
cent in February 2026,
after 3.3 per cent in
January. More strikingly, it
said average price levels
across the OECD were
35.6 per cent higher in
January 2026 than they
were in December 2019,
before the pandemic. The
International Monetary
Fund (IMF)’s April 2026
World Economic Outlook
also projected global
headline in昀氀ation to rise
modestly to 4.4 per cent in
2026 before easing in 2027.
So even where in昀氀ation has
slowed, the level of prices
remains much higher than
it was a few years ago.
That is why so many savers
around the world feel like
they are running hard just
to stay in place.
So what should savers do?
This is not a reason to
give up on saving. Cash
still matters. Moneysmart
encourages Australians to
keep accessible savings
for emergencies and
short-term goals, and to
review savings accounts
regularly to compare rates,
fees and conditions. It
also notes that if you are
thinking longer term, it can
be worth matching your
approach to your time
frame and risk tolerance,
rather than assuming one
account should do every
job. In simple terms, cash
is still important for safety
and 昀氀exibility, but it may
not be enough on its own
if your goal is to build longterm purchasing power.
The real question to ask
Instead of asking, “Is my
savings balance growing?”
a better question might
be, “Is my money buying
me more life than it did
a year ago?” That is the
real test. In 2026, many
savers are doing the
disciplined thing, yet still
losing ground because
in昀氀ation remains sticky,
account conditions can be
restrictive, rate rises do
not always 昀氀ow through
evenly, and tax chips away
at interest. Saving is still
smart. But in a higher
cost world, it pays to
look beyond the headline
balance and ask whether
your money is truly
moving forward.
