What is Inflation? How It Works, Why It Matters, and How to Beat It
Inflation.
It’s a simple enough concept. Prices go up. Money buys less. But beneath that seemingly straightforward reality lies a force powerful enough to sink currencies, destroy savings, shape elections, and punch a hole through your weekly grocery budget. It’s not just an economic stat. It’s the oxygen level of the economy — too little and growth suffocates, too much and everything catches fire.
This guide cuts through the noise. We’ll break down what inflation is, what causes it, how it's measured (and why those measurements often miss the mark), what it means for your wallet, and how you can beat it in 2025 and beyond.
What is Inflation? Understanding the Basics
At its core, inflation is the rate at which prices rise — or more precisely, the rate at which your money loses value.
Your favourite flat white costs $5 today. Same beans. Same barista. Same Melbourne alleyway. But next year? $5.25. Harmless? Multiply that by every item in your life — fuel, groceries, rent, electricity, streaming subscriptions — and your $200 weekly shop starts looking more like $240.
This is inflation: slow, quiet erosion. And it compounds.
AISC: Why it's the best Mining Metric, and why it still Sucks!
Mining companies have a lot of moving parts. Extracting and processing minerals isn’t simple—it involves everything from drilling and blasting to transportation, refining, and site administration.
Each stage has its own set of costs, which can swing up or down depending on things like energy prices, regulations, and labor conditions. These variables mean mining costs are always in flux. Understanding these costs is the key to knowing if a mining project will ever be profitable.
Or if you're better placed to take that Christmas bonus to the casino and throw it all on lucky red 27.
Let's break down the key metrics: C1 costs and AISC, where they appear on financial statements, and why they matter to you as an investor. We'll explore how these metrics impact a mine's profitability and ultimately help you decide if it's worth your money.
C1 Costs: The Direct Costs of Production
C1 costs are the basic measure of what it takes to get the metal out of the ground and ready for sale.
They include mining, milling, concentrating, on-site admin, and refining. Basically, the "bare minimum" costs needed to produce the metal.