📈 Inflation is everywhere right now
🧐 You may have some questions such as:
1️⃣ What is inflation?
2️⃣ How fast is it going up?
3️⃣ Why should I care?
4️⃣ What can I do about it?
🔺 Inflation was just announced for May of 2022 to be 8.6% year-over-year from May of 2021. It was 1% month-over-month from April 2022.
This is according to the Consumer Price Index (CPI) which measure the cost of a "basket" of goods for the average American household.
The CPI includes 🏠 housing, 🚗 transportation, 🍔 food & beverage, 👕 apparel, 🎓 education, 🚑 medical, 🏀 recreation & miscellaneous.
🚨 This is highest level in over 40 years since 1981 !
Inflation is the decrease in the value of your money due to an increase in prices of goods and services in the economy.
Some little known facts:
1️⃣ Wage growth is 6.2% over the long term
2️⃣ Stock market growth is 10.5% long term
3️⃣ Real Estate Appreciation is 3.9% long term
🔥 If inflation runs hot for too long, even with wage & asset growth you could experience a period of losing more money than you can keep up with.
This is why the federal reserve is so big in the news right now. They are raising the base interest rate by 50-75 basis points
(bps) which is equal to 50-75% in just the month of June alone.
Follow @thehardyinvestor for more videos !
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