It’s Not Unprecedented
“Inflation is when you pay fifteen dollars for the ten dollar haircut you used to get for five dollars when you had hair” –Sam Ewing, American Writer and Humorist (1920-2001)
That’s a pretty good example of what inflation is all about. I’m sure we’re all feeling the pinch of the continuing increase in cost of everyday items.
Check out this interactive chart that shows the change in prices of common everyday items we purchase from January 2020 through June 2022: Inflation and the cost of every day items.
Inflation historically averages around 3% per year. Currently the rate is over 8%. No wonder we’re all feeling the pinch. This is not unprecedented. There were periods in the 70’s and 80’s were inflation was running between 12-14%.
It’s a complicated problem with no easy answers. Historically we always get through it. Hopefully, the correct monetary and fiscal policies along with the supply chains getting back to normal happens sooner rather than later.