Yeah but it doesn't take into account that your assets do grow with inflation too so your retirement fund and house would go up in value leaving you with more higher net worth over a lifetime, the buying power should be accounted for relative to salary and assets as well to get a clearer picture. Inflation is not a problem but necessary for an economy but should be around 2%. Deflation is worse on people.
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Your assets only grow in value if their return is bigger than inflation. Most people just dump into savings accounts, with very low yields, and lose purchasing power