Inflation has been affecting people living in the United States for a while but it’s taken a toll ever since the 1980’s which makes the price of things such as “food and household items” highly overpriced due to more jobs and higher wages which causes inflation.
Inflation has been affecting Americans for quite some time now, as the inflation rate is around 2.9% currently. Back in 2021 and 2022, the inflation rate was as high as 7% due to the pandemic that occurred.
Inflation occurs when money supply is too big compared to the size of an economy, the unit value of things people usually purchase rises up. It affects all aspects such as consumer spending all the way to interest rates. The main people affected by inflation are people with lower incomes.
A mom who is impacted by inflation provides, “When I was younger, Inflation wasn’t that much of a problem but now you have to pay five dollars for a twelve pack of eggs.” This goes for many all over America since prices went up so high that even weekly purchases are so expensive now. Inflation can decrease if fiscal tightening occurs which won’t stop inflation fully, but it will definitely make a major decrease.
Overall, Data shows that America isn’t the only place suffering from inflation, and it’s actually on the lower side. NIgeria’s inflation rate is 24.7% and is a very major problem and isn’t decreasing anytime soon.
In conclusion, Inflation affects many people all over the world, especially low income households since it’s now more of a challenge to buy weekly things like groceries or medicine. If fiscal tightening occurs, it could then help decrease inflation which will make buying things a lot more affordable and easier for many.