Money today is literally worth more than it will be in the future in terms of what it will buy you. In 1985, before you drove to the supermarket to buy a liter of milk for 52 cent per liter, you would complain about spending 75 cent per liter to fill up the tank of the car you had just purchased for €7,500. Today, milk costs an average of €1.00 per liter, you are more than happy to spend €1.29 per liter at the pump, and buying a new car will put a €27, 500 dent in your bank account. You can largely thank inflation for this.
But inflation isn’t entirely to blame for rising costs nor does it explain why in 1985 the average home in Dublin sold for € 50,000 whereas today the median home price in the city has now risen to €350,000!! There are countless reasons why costs skyrocket with time, including popularity, world events, diminishing resources, natural phenomena, technology, etc.
