Prices are Rising. Should We Be Worried About Inflation?

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That’s actually normal. 2 to 3 percent inflation is what the Federal Reserve Bank targets, and a number in that range is healthy for the economy.

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What’s not so healthy is when the cost of a vital product like lumber rises exponentially.

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In economic terms, inflation is the decrease in purchasing power—or value—of money. It’s generally measured as an increase in the price of goods and services.

Prices are Rising. Should We Be Worried About Inflation?

An important detail regarding inflation is that it affects the entire economic system, not just one product.

We’re all familiar with how gas prices can fluctuate daily. Those changes are not inflation. They are short-term changes typically based on supply and demand.

Since inflation affects the entire economy, we need to collect data across the entire economy to find and measure inflation.

I had established my retirement funding to cover things regardless of my working.

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Prices are Rising. Should We Be Worried About Inflation?

That’s actually normal. 2 to 3 percent inflation is what the Federal Reserve Bank targets, and a number in that range is healthy for the economy.

What’s not so healthy is when the cost of a vital product like lumber rises exponentially.

In economic terms, inflation is the decrease in purchasing power—or value—of money. It’s generally measured as an increase in the price of goods and services.

Basic Definition – What is Inflation?

Prices are Rising. Should We Be Worried About Inflation?

An important detail regarding inflation is that it affects the entire economic system, not just one product.

We’re all familiar with how gas prices can fluctuate daily. Those changes are not inflation. They are short-term changes typically based on supply and demand.

Since inflation affects the entire economy, we need to collect data across the entire economy to find and measure inflation.

How Do We Measure Inflation?

I had established my retirement funding to cover things regardless of my working.

What Are Historical Inflation Rates?

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