When I was growing up, I remember my dad would always mention the fact that when he was a kid, he could get a bag of chips, a candy bar and a drink for like 25 cent. I also remember that I could get a small juice, a bag of chips and a 50 cent candy bar for $1.
In 2022, these three items would total $2 and some change.
We are currently experiencing inflation in the U.S, with price increases ranging from gas, to grocery items due to the pandemic and the Russia/Ukraine conflict. It is one thing to hear my dad speak on the price differences when he was a kid and seeing these price increases myself.
According to NBC, “although average hourly earnings are up 5.1% from a year ago, prices have been rising even faster, especially for groceries and — until quite recently — gasoline, so paychecks can’t stretch as far. The Consumer Price Index, which measures the average change in prices for consumer goods and services, jumped a higher-than-expected 9.1% in June, the fastest pace since 1981.”
In economics, inflation is a general increase in the prices of goods and services in an economy. When the general price level rises, each unit of currency buys fewer goods and services.