With inflation rising in Australia, an uncomfortable truth is we waste a lot of what we have

‘Perhaps higher prices will teach us to put more value on – and extract more value from – the things we buy.’ Photograph: Joel Carrett/AAP

Bigger isn’t always better. Take it from the inflation rate.

The mechanics behind inflation are straightforward. It’s supply and demand on an economy-wide scale. We have a limited supply of resources and an unlimited desire for them. If everyone starts buying more, prices will go up. If fewer resources are available and demand is unchanged, prices will (also) go up.