Inflation is a hot topic in the news today as prices go up and the value of the dollar goes down. The continuation of this pandemic has surely impacted our economy and day to day finances. Inflation today is the highest it has been since 1982 and rapidly increasing. We have seen a decrease in supply leading to multiple shortages. While supply remains low, demand is staying the same and in many cases outweighing the current supply. This leads to heightened prices. Numerous areas have been affected, including: gas prices, stocks, homeowners, renters, cars, household goods, and food. Wages have a big influence on how inflation affects us. Historically wages have not been equal to the cost of living and we have seen how inflation particularly affects lower-and middle class workers. As companies increase their wages we may see an ease in inflation.
There is some uncertainty on how long this period of inflation will last. However, experts believe that this rapid growth of inflation will not stay forever. Policymakers and government officials are becoming more aware of the heavy impacts of inflation right now. They are working to bring solutions.