Here's an illustration of how lifestyle inflation works: Imagine a college student named Gal. In college, Gal worked odd jobs as a server and a library assistant to make ends meet. Gal shared a three-bedroom apartment off-campus with two other students and subsisted on sandwiches and ramen...
Now that we’ve defined the three main types of inflation, we can move into why sometimes one goes up but another does not. A rapid increase in the broad money supply usually comes with either asset price inflation or consumer price inflation, and a few variables can affect which of those...
Inflation is an annoyance that hits us all in the wallet every time we stop at the supermarket or gas up our vehicles. But that's the short-term impact. As you look forward to retirement, it's important to consider the long-term effects of inflation on your future financial well-being....
It may surprise you how much inflation can erode purchasing power. Use this calculator to estimate how much more income you may need when factoring in inflation between now and until you reach retirement to keep the same standard of living that you may have today....
The Consumer Price Index (CPI) measures the change in average consumer goods prices over time. The Producer Price Index (PPI) measures prices at the wholesale level. The Federal Reserve prefers an alternate measure of consumer inflation: the Personal Con
It's basic economics: The rate of inflation increases when demand in the economy is higher than supply, causing an overall price rise. For fixed-income investors such asretireeswhose investments are their main source of income, inflation can impact their means of living. ...
With inflation rates finally slowing, and the threat of a recession in the news, deflation is also a phenomenon many should prepare for. Inflation has been a stressful reality for many Americans recently, having a marked impact on consumer budgets. But with inflation rates finally slowing, and ...
Inflation can be mixed news for taxpayers. Your tax bill could be higher — or lower — as a result. WE FEEL THE IMPACT OF INFLATION as consumers every day, but did you know that rising prices could also affect your tax picture? Federal tax brackets and many benefits are adjusted annually...
Does Inflation Lead to a Recession? Inflation can lead to a recession. If prices are too high due to inflation and wages have not increased accordingly, this can cause consumers to slow down or stop spending. When this happens, businesses start to lose money, which would lead to them laying...
However, during the NAFTA years, U.S. trade deficits (importing more from a nation than you export) did increase, especially with Mexico. Inflation also increased. What Effect Did NAFTA Have on America? While NAFTA allowed to lower costs, increase productivity, and improve U.S. overall compet...