Inflatables
Inflation has been the biggest trend of 2022 with several catalysts of varying timeframes pushing forward the surge in prices. With everything from gas to groceries to cars, it seems inflation is an inevitable part of the economy in 2022, and an inescapable monster eating away at our wallets. When looking at inflation from a quantitative perspective, our conclusions appear to hold true. Indeed, the consumer price index (CPI) for February rose 7.9% from a year ago, the highest level since January 1982. In case you are not familiar with it, The Consumer Price Index (CPI) is a measure of the average change over time in the prices paid by urban consumers for a market basket of consumer goods.
So, what does this inflation mean for everyone? And where is it heading? Before that, we should break down what’s causing it. There appear to be three primary causes. An unprecedented government spending surge, persistent supply chain disruptions that leave stimulus-fueled demand to hang dry, and now the Ukraine crisis. This inflation means everything will be more expensive for a while, and while macroeconomic policy slowly figures some of it out the issues surrounding the supply chain and the conflict are harder to solve. Most of these things will take time, and inflation may just get worse before it all gets better. To prepare themselves, many investors turn to more allocation in investing and saving as a hedge against rising prices. What do you plan to do?
I am not a financial advisor and my comments should never be taken as financial advice. Investments come with risk, so always do your research and analysis beforehand.
