Inflation can be hard to understand, and it can be almost impossible to track all the ways that it can lead to increasing costs and prices that you have to deal with. With the most recent reporting showing interest has reached a 40-year high of 9.1%, it’s more important than ever to understand inflation in order to try and limit rising costs.
With inflation so high, it is the first time many consumers have had to go through this situation. What you’ll find out, and what the Bureau of Labor Statistics confirmed, is that some costs are rising while others – like smartphones – are actually cheaper than they were a year ago. One of the biggest surges in price is energy of all sorts, with average consumer energy prices rising over 40%. This includes everything from gasoline to electricity, and its likely you’ve already seen the effect this has had on your utility bills.
Energy costs play a part in influencing increased prices on most things you purchase. Logistics to ship products and parts becomes more expensive, and the ongoing utilities for factories, stores, and more all can cause costs to be passed on to the consumer. Groceries are another clear example of rising prices. Dairy products have seen increases that are upwards of 20%, whereas vegetables, poultry, and many other consumer staples have seen costs increase 10% or more.
This can have a major impact on the bottom line of low-to-middle income families throughout the nation, although certain regions may see larger impacts. Lower income families already pay a large portion of their income to pay things like utility bills and fuel costs, and those can now take up an increase of 5% of the average low-income family’s budget.
