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Inflation has many ripple effects on the economy. It increases costs for individuals and families, incentivizes an increase in interest rates by the Federal Reserve, puts pressure on businesses, and a lot more. All these effects may influence your financial situation and should be factored into a comprehensive financial plan. As inflation sticks around longer than the Fed thought, it’s important to understand the causes, effects, and factors of the state of inflation today.
– Happy Reading
Jim Brogan, MBA
President and Founder of Brogan Financial
How Inflation is Affecting Families Today
Sometimes it’s easy to talk about inflation in terms of specific metrics and its effect on the economy. But what about its effects on families and their budgets?
Businesses May Not Be Able to Keep Prices Up
Profit-led inflation may be coming to an end as businesses must start competing harder for consumers’ dollars.
Is a Return to “Normal” Prices Realistic?
It’s one thing to fight inflation, but it’s another to reverse costs and cause deflation. Pre-pandemic prices may never return.
The Road to the Target 2% Inflation Level
While prices may not decrease and return to pre-pandemic levels, the Fed’s goal for inflation to hit 2% year-over-year may not be too far off.
Is Inflation Continuing its Downward Trend?
Unlock the full picture of inflation, its effect on the economy, and what it could mean for the future of the economy.