People are experiencing higher prices at the gas pump, grocery store, and even in their utility bills.
Inflation is starting to become an issue for Americans across the US.
How high is inflation?
In February 2022, it increased 7.9%. This is the highest level since January 1982. Inflation isn’t uncommon. It is actually normal in a healthy economy. Click here to read more.
Inflation begins to be problematic when it outpaces the rate of “wage gains.” The problem is, that is exactly what is happening in the US right now.
The higher the rate of inflation, means that your money isn’t worth as much. This is because it costs more to buy goods and services.
Why is inflation so high?
The lockdowns triggered by the pandemic that started in 2020 played a role in the downturn of the economy.
The current rate of 7.9% is the highest and fastest pace in 40 years.
In the past year:
- cost of shelter has increased 4.7%
- cost of food has risen 7.9%
Inflation is influenced by labor shortages, wage increases, raw material costs, and government spending.
The American economy is seeing increased prices across the board on basic needs like clothes, gas, and food.
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