Today sees the launch of the new £1 coin.
We've not been able to get our hands on one yet, down here on the Surrey/Sussex border, but look forward to feeling how different it is to the existing coin we all know and love.
Aviva have published some interesting research to coincide with the launch of the new £1 coin, which highlights the impact of price inflation over time.
The old pound was introduced into circulation 34 years ago, back in 1983.
According to Aviva, £1 today will buy you only one-third of the goods and services it could buy back then.
In fact, if the Bank of England wanted the new £1 coin to have the same buying power, it would need to be revalued as a £3.10 coin!
Aviva describe inflation as silently shrinking the value of our hard-earned cash.
The new £1 coin is a good reminder that even modest levels of price inflation, over long periods of time, can have a dramatic impact on our financial planning.
“Inflation silently shrinks the value of our hard-earned cash. This simple example powerfully demonstrates the value of constant budgeting and careful investing to minimise its impact. With inflation on the up, the need for vigilance is greater than it has been for a number of years.”