This chart takes inflation into account, so we can see
the dampening effect of inflation on the gains / losses in purchasing power over the decades.
Not exact matches
With the
dampening effect of the appreciation on domestic
inflation still having further to run, our current assessment is that underlying
inflation will decline to around 1 1/2 per cent during 2004 (assuming the exchange rate remains stable at around its current level).
The conclusion may be that there is some way to go before the
dampening effects of demographics on wages and
inflation are fully worked through.
One drawback to such a lengthy contract is
inflation's
dampening effect on the value
of the policy, and when a consumer buys a singular coverage for so long, they tend to not continually update their policy as might be required if a 10 year was bought.