I’ve been mulling over a theory about inflation that’s been doing the rounds online, and it’s kept me awake at night more than the humidity we’ve been having lately. The core idea is simple but deeply unsettling: our main tool for fighting inflation – interest rate hikes – might be fundamentally broken because of how wealth has concentrated in our economy.

Picture this scenario: A 25-year-old takes out a $950k mortgage with a 5% deposit. That’s nearly a million dollars of new credit, created essentially from thin air, transferred to a 55-year-old investor who’s just cashed out $700k in property profit. That older investor? They’re not sitting on that money. They’re buying a new car, doing renovations, booking overseas trips. They’re spending like there’s no tomorrow, because for them, there basically isn’t – they’ve already won the game.

The breaking point came yesterday at a café in Landsborough. $28 for a toastie and coffee. That’s the moment when all the frustrations about rising costs crystallized into something that couldn’t be ignored anymore. When did we normalize these prices? When did we start accepting this as our new reality?

Looking at my household expenses over the past couple of years paints a grim picture. Home insurance premiums jumped 60% in two years, forcing me to switch providers. Now I’m switching again because they’ve tacked on another 24% increase. The weekly grocery bill that used to hover around $280 during COVID now regularly exceeds $400. And don’t get me started on electricity bills – each quarter brings a fresh wave of sticker shock.

The weekly grocery shop has become something of a psychological thriller lately. Standing at the checkout, watching those numbers climb higher and higher, I’m reminded of my old flight simulator sessions - except there’s no landing in sight for these prices.

Last night’s shop at my local Woolies left me properly gobsmacked. A handful of basics - some fruit, vegetables, and a few pantry items - somehow morphed into a three-figure sum that would have seemed absurd just a year ago. Remember when a leek was just a humble vegetable rather than a luxury item?