As we enter the third year of the COVID pandemic, we’re still seeing countless effects that have nothing to do with our personal health, and the list just continues to grow. One of the most prominent aspects of COVID fallout is the massive inflation we’re currently experiencing. In fact, the inflation jump is the highest it’s been in 30 years.
As of 2021, the Consumer Price Index (CPI), by which inflation is measured, rose to 7%, despite the fact that the federal reserve strives to keep that percentage at 2 or lower. The standard methods of keeping inflation low, such as decreased bond prices and increased interest rates, etc., have apparently fallen short amid the economical challenges brought on by COVID.
The result is that we’re seeing a major hike in prices across the board. For example, used car prices have jumped by nearly 30% since last year. Food prices have increased by over 8%, clothing by 5.6%, and healthcare by 6%.
Nevertheless, it doesn’t all have to be doom and gloom for our personal finances. There are a few things that individuals can do to protect against inflation. Things like investing, purchasing rental property, and advancing education for increased earning potential are just a few examples of how to take an offensive stance against the effects of inflation.