6 Surprising Things That Are not Hurt by Inflation
Inflation has hit consumers’ wallets pretty hard the last couple of years. In April, inflation was 8.3%, up from the 7% in 2021, according to the Bureau of Labor Statistics.
Inflation is how much the price of goods or services goes up for the overall economy. Because prices don’t go up at the same rate, economists calculate the percent change in a price index over time. The Bureau of Labor Statistics uses the Consumer Price Index (CPI), while the Federal Reserve prefers the Personal Consumption Expenditures (PCE) price index. The former is more widely reported on.
Deflation, the opposite of inflation, typically happens when there is a recession. A modest inflation rate between 1.5% to 2% can indicate that the economy is growing at a healthy pace. That’s the range the Federal Reserve targets when making economic policy. Too much inflation is a problem because it impacts our ability to pay for things that we need, like groceries. It is especially hard for retirees on fixed incomes and lower-income households who have less disposable income.
There is a silver lining. Not all things have gone up in price. Watch this video for six that are important to everyday life.
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