Do You Know How to Calculate Your Personal Inflation Rate?

There’s no two ways about it. Prices are moving up. For some things, by over 50% in the past year!

High Inflation Is Here Now. Are You Wondering How Badly It Will Hurt Your Wallet?

What Does It Mean?

According to the US Inflation Calculator website, last time we saw a monthly year-over-year reading of 5% was in 2008.

How Badly Will Inflation Hurt Your Personal Wallet?

If you simply look at the BLS’s CPI number, it looks alarming. But it may not be quite that bad for you personally.

– Shelter: 2.2% – Energy commodities: 54.5% – Energy services: 6.2% – Food at home: 0.7% – Food away from home: 4.0% – New vehicles: 3.3% – Used vehicles: 29.7%

The BLS website lets you drill down to major categories.

– Transportation services: 11.2% – Apparel: 4.6% – Medical care commodities: -1.9% – Medical care services: 1.5% – Alcoholic beverages: 1.6% – Tobacco and smoking products: 7.3%

With this breakdown, you can calculate your own personal rate of inflation.

Is Inflation Really That Low For Everyone?

Imagine if you need to buy a used car tomorrow, or if you’re a traveling salesman driving from town to town every day.

The Bottom Line

Inflation in general isn’t good for consumers, and is especially bad for people living on fixed income.

Money Management

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