12/02/2021
Is inflation good or bad? I read this article that talks about how beneficial or, non-beneficial, it’s high inflation for our economy and mostly for our personal economy.
Inflation is the steady raise of prices over good and services over a period of time. It’s also dictates how they Government decides about monetary policy matters.
According to the article inflation is good when you have a fixed interest rate on your loans for example, when you depend on social security and if your paycheck reflects an increase to beat the high prices.
It’s bad when, neither one of the ones above apply.
We are living high inflation costs now while the economy recovers from pandemic but it’s projected to stabilize for 2022-2023.
We had an increase in inflation from 2019-2021 of 2% . It was I the lows 2.8% and is now almost at 5% but it’s predicted to stabilize by the end of 2022.
The current loan rates are to remain low until we come back to a normal inflation rate of approximately 3% or around there.
But in the meantime, interest rate will remain low to balance consumer demand until we recover from the pandemic.
Question is: What are your best practices to handle your economy while inflation remains high?
Do you agree with the article when it talks about the benefits?
Love to hear your opinion 🤗
To some, inflation is a warning sign of a struggling economy, where others see it as a sign of a prospering economy. Seems confusing, right? Let’s examine this more.
