Five things to know about inflation and how it is affecting us

by | Jul 19, 2022 | World

Filling up the gas tank costs more than it did six months ago. So does the price of flour and sofas. A cheap used car is harder to find. And if you want to buy a home, you’d better move fast. Mortgage rates are going up.It seems that every time you make a purchase, prices have ballooned. And it’s happening all over the globe. Inflation is galloping to the highest level many people have seen in their lifetimes. Both the United Kingdom and United States, for example, have recorded annual inflation rates of 9.1 percent, the highest level in 40 years. Nothing is immune: housing, food, electricity bills, construction supplies, and plane tickets have all gotten more expensive.
So what is inflation and why is it so high? Here are five things to know:
1. What is inflation – and why is it happening?
Rising costs mean inflation, which, put simply, means you get less for the same amount of money. There’s always some inflation, but generally not at these jaw-dropping levels.
Basically, prices go up when there are shortages and/or a hefty demand for goods or services. A company will raise prices if shortages mean it needs to spend more on materials, wages or shipping. Firms will also charge more if they realise customers are willing to pay more because of scarcity.
Right no …

Article Attribution | Read More at Article Source

Share This