What Exactly is Inflation?
All citizens understand inflation to be one of those unfortunate circumstances in which practically everything increases. From the prices of a simple candy bar to the increase in gas prices, inflation has everything to do with it. This certainly affects many families, as they will need to purchase less of that particular item and make it suffice.
Money is very scarce in certain areas, and making ends meet is already a challenge. Therefore, the fact that prices continue to increase certainly is not a good contribution to these families. “Inflation is a rise in prices, which can be translated as the decline of purchasing power over time,” stated Investopedia.
How Much Has Inflation Increased?
As the days continue to go by, inflation continues to increase. The real question is, how much has it increased from 2022 into 2023? Grocery prices nationwide are up by 6.4% compared to this time in 2022, according to the Bureau of Labor Statistics. In the Chicago area, prices are up by 5.4%. That is a very large amount that has increased only in the past year!
As aforementioned this causes many problems within the household. Many families find it difficult to purchase groceries, and inflation certainly does not help the cause. It has increased especially because of the recession that was had because of COVID. The demand for certain items skyrocketed, therefore making the cost of those items a lot more expensive than usual. All in all, prices after the pandemic have not been the same as before, and many families continue to struggle.
What Does Inflation Affect?
It can affect a wide variety of things, such as gas prices, metal, certain household utilities, and more. It could even affect certain things like eggs! Prices for most items have skyrocketed. Moreover, the product that rose the most in the last year is eggs which are crucial in most households. The fact that they have increased dramatically has not been a great outcome for many families.
Is Inflation Going to Continue Increasing as the Years go by?
One can say with complete certainty that it will only get worse as years go by. This will not be beneficial to many citizens nationwide, and there may even be protests because of it. “But it also supports the story that the Fed is not done raising rates and that inflation is still well above the central bank’s target of 2% annually,” according to US News. There is a hope that this does not ultimately come true.
Is Inflation Actually a Good Thing?
Whenever someone hears the word “Inflation,” immediately negative comes into one’s mind. But is it actually a good thing that we have inflation? The argument can go both ways. “A controlled rate of inflation may be seen as a necessary evil, if inflation supports Economic Growth,” according to Quora.
Being that it is a necessary evil, many people do not see it in that manner. It is already hard to earn income in the United States, and Inflation certainly does not make this any easier. Inflation does support economic growth, and it supports people as a nation economically.
Inflation In the Future
Citizens do not want to look forward to the future when it comes to Inflation. It is a scary thing that continues to plague the United States. It is especially more noticeable in low-income communities around the nation.
In the future, there is a hope that inflation will decrease, as the recession that we had is disappearing. This way, more families will be able to have more groceries and therefore will live a better life.
Written by David Loran Jr
Sources:
ABC7 News: Why are eggs so expensive? New report breaks down grocery price increases
Investopedia: Inflation: What It Is, How It Can Be Controlled, and Extreme Examples
US News: Wholesale Inflation Rises 0.7% in January, More Than Expected
Quora: Why is Inflation called a necessary evil?
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Inset Image Courtesy of Amy’s Flickr Page – Creative Commons License