E choke! That’s the exact reaction when you enter the market with the same salary and realize the things you used to buy with ease now leave your bag half-empty. No one reduced your pay on paper, but somehow it just doesn’t reach again. That silent stress you feel? That’s inflation working behind the scenes.
It sounds scary, but let’s break it down in the simplest way.
What Is Inflation?
Inflation is when the prices of goods and services keep rising, which means your money buys less than it did before.
Imagine last year ₦10,000 bought you rice, chicken, oil, and maybe even some drinks. This year, the same ₦10,000 can barely handle rice and oil. Did your salary reduce? No. But its power surely did. That’s inflation.
It’s like pouring extra water into jollof rice. The pot is still full, but the sweetness and strength aren’t the same.
Why Does Inflation Happen?
A few reasons:
- Too much demand: When everyone is chasing the same goods, prices go up.
- Higher costs: If it becomes more expensive to produce or import goods, sellers increase prices.
- Weak currency: If the naira falls against the dollar, imported items suddenly become costly.
Think of inflation as a hidden tax you don’t see written anywhere, but it reduces your purchasing power every single day.
How Does It Affect Your Salary?
When your salary stays the same but prices climb higher, you’re actually earning less.
Example:
- In 2022, ₦100,000 could pay your rent, cover food, transport, and small flex.
- In 2025, ₦100,000 may only manage food and transport, leaving you tight.
Your bank alert still shows ₦100,000, but in reality, inflation has already taken part of it.
Real-Life Example
Let’s say your salary is ₦200,000. If inflation jumps by 20% in a year, your ₦200,000 now buys things worth only ₦160,000. That’s like losing ₦40,000 in value without any HR deduction.
That’s why people often say, “this salary has finished before I even collect it”
What Should You Do?
- Invest wisely: Put part of your income in assets that grow faster than inflation (like stocks, ETFs, or mutual funds).
- Diversify: Don’t depend on just one basket. Spread your money.
- Stay informed: Financial knowledge helps you stay steps ahead.
If inflation is quietly eating your food, investing is like covering that plate with a lid.
Conclusion
Inflation is that silent thief that reduces your salary’s power, not by cutting the amount, but by making everything around you more expensive.
But you don’t have to remain helpless. By investing and staying financially informed, you can outpace inflation and protect your future.
So next time you notice your ₦10,000 struggling at the market, don’t just complain; take it as a reminder to put your money to work. Because while inflation eats quietly, smart investing grows steadily.