Over the past few months, inflation has run rampant in the US economy. There are many variables contributing to this situation, so let’s break them down one by one. Primarily, employment numbers are affecting the economy and inflation. Indeed, there are expected to be 11 million job openings in the United States, which exceeds the 5.9 million workers who are unemployed but are currently looking for a job. As explained last week, jobless claims are at their highest point since November and big companies like Shopify have laid off 10 percent of their workers.
The most recent data on the Consumer Price Index (which tracks prices people pay for goods and services) will be released this Wednesday. As of now the Dow Jones expects the number to come in at 8.7%, down 0.4% from June. Beyond employment and the CPI, the average price for a used car is $30,886, up 0.2% over the past 90 days and 10.5% year-over-year. This shows the continuing trend of used car prices and more broadly the trend of inflation. The trend is so strong in fact, that used car prices in the last 18 months have outperformed cryptocurrencies, making a used car one of the best investments that people can have.
What do you think about the inflation situation and will it get better anytime soon?
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.