Inflation is still very high, driven mostly by gas and used car prices. But I think we all feel it in food and housing as well. It’s high, but not unprecedented in the US. In the early 80s we saw inflation hit over 14% per year!
Is this going to continue going forward? No one really knows. The federal reserve has already raised interest rates and is likely going to continue to which can stave off inflation. World events like the supply chain issues impacting the used car market and the Russian war impacting gas prices are two main drivers of these soaring prices. If and when those situations resolve (hopefully very soon) gas and car prices may come back to earth. Inflation also has a weird social component. Basically if people BELIEVE prices are going to rise, they do.
So what do you do about all this?! Well first, try to start BELIEVING that prices are going to get lower. That could help.
Otherwise, do the same things you do in times of low inflation. Spend less money than you make. Keep enough cash to cover an emergency. Invest everything else in assets that historically well outpace inflation, like index funds and cash flow positive investment real estate! 🙂
As always, reminding you to build wealth by following the two PFC rules: 1.) Live below your means and 2.) Invest early and often.