Since the beginning of the COVID pandemic, one of the many global effects is the rise of inflation and the depletion of our personal wallets. While our Federal Reserve tries to keep inflation below 2%, since the pandemic, we’ve seen it jump to 6.8%. In fact, it’s the highest it’s been in the past 30 years.
So, what is inflation exactly, and what causes it? Essentially, inflation is an increase in the price of goods and services due to a weakening currency. It can be caused by the surge of product demand, supply chain breakdowns, a shift in the housing market, and production cost increases, all of which we have seen during the global crisis.
This 30-year inflation high means that, since last year, we’ve seen the cost of food increase by 8.3%, energy by 4.6%, and used cars have jumped up by nearly 30%. Virtually every American is feeling the additional strain caused by inflation, however, there are some things individuals can do to help protect their bank accounts during this time.
A few of the things individuals do are to invest in the stock market, invest in real estate which generally provides an ROI of at least 10%, and further their education for higher earning potential.
This is a time of uncertainty, but Americans are not powerless to face inflation without a plan for financial success.