Surviving Inflation in The United States
The term “inflation” refers to a change in price level over time. Since the Covid era, around the end of 2020, prices began to grow at a significantly faster annual rate exceeding the federal reserve’s 2% annual target. The preferred indicator of price level movement used by the Federal Reserve is the personal consumption expenditure (PCE) index rate, which effectively represents the average price of the consumption portion of gross domestic product. Personally, within the last few years, I have noticed that it has become more difficult to support yourself in times of inflation. I find it more challenging for myself and others in my age demographic to build a foundation for their own lives, considering that housing, food, and energy prices are at an unaffordable level for the majority of the general population.
Due to inflation, today's average price of gasoline in the United States is $3.83 per gallon, but depending on state and region, prices may vary.
As inflation increases, the value of the US dollar’s purchasing power keeps declining. If in 2019 I purchased a product for $20, that same product today in 2023 would cost $23.91. That is a progressive rate of inflation at 19.6%.
The buying power of the US dollar continues to lose its value as inflation increases. In the picture above, the groceries that I bought (which only consists of snacks) for myself were worth $62.47.
During the first quarter of 2022, due to rising prices and customer demand, Dollar Tree has Permanently raised the price of all one-dollar products to $1.25.
As a result of inflation, the housing market is a seller’s market, which means that there is a shortage of available homes, rising mortgage rates, and growing home prices. This makes this a challenging time to purchase a home.
Fast food businesses have altered their menu prices as a result of the depreciation of the US dollar. Fast food is consequently growing more expensive.
