Photo: Money Talks
The value of the dollar has technically declined.
It’s about 11 cents cheaper than it was at the grocery store a year ago. Plus, that $1 pays you 15 cents less on your utility bills and 6 cents less in your rent and housing costs. All of this adds up to a significant amount of change.
It’s also the reason for inflation, as prices continue to rise around the world, and is currently the number one concern for Americans.
The current inflation rate is almost as high as it was in the 1980s. It hit 8.5%, according to July reports from the Bureau of Labor Statistics, but was unable to climb higher thanks to falling gasoline prices.
Therefore, there is a common question in the minds of working people: When will the price increase end? The answer to that question may never be. But it’s not too bad – if the hike isn’t too steep.
The United States is not the only country with high inflation rates. In almost all developed economies around the world, the average annual inflation rate in the first quarter of this year was about twice as high as a year earlier.
People around the world are faced with difficult decisions about how to spend their paychecks wisely. Wages and salaries have fallen 3.5% in recent years after increasing price adjustments were made.
There is Good Inflation
Inflation is endless; it only gets less risky. As a matter of fact, we don’t desire it to conclude ultimately.
The Federal Reserve – the US central bank managing the inflation rate through a set of interest rate increases – is targeting a rate of about 2%, meaning the prices may increase, but not as much.
When some say inflation is soothing, they don’t indicate that groceries are improving in price. What they mean is that they’re not soaring as much every month.
It is tough to reach a deflationary era, and the government wants to prevent it as much as possible because it commonly implies that the economy is easing too quickly.
In conclusion, inflation will remain as long as we live, but you won’t realize it as much.
Between the beginning of 1991 and the end of 2019, the year-over-year inflation average lies at around 2.3% per month.
Those can be interpreted as ideal hikes, the type that the cost of living can live with, and the type of “in my day, a soda only cost a nickel” increases that can only be noticed over a long period of time.
Opinions expressed by Influencer Daily contributors are their own.