Understanding inflation and its effects on our household and investment portfolio are crucial. We almost always have some inflation, meaning wages and prices increase which helps job creation and economic growth.
But it is not enough…not nearly enough progress has been made for women in many areas of money management, wages, investments, retirement yet women are more educated at higher levels and live longer than their male counterparts.
These disasters impact manufacturing plants, businesses, and residential areas. These unpredictable events may put temporary or long-term pressures on the production of goods, causing inflation due to scarcity.
A government budget deficit occurs when expenses outpace revenues, not unlike the household budget.
Multiple fiscal stimulus packages related to hardships caused by the pandemic have been essential to provide funds to businesses and unemployed workers.
Many suggest that we will have higher inflation over the next few years. Higher inflation, so long as we don’t have stagflation or hyperinflation, is manageable. Several investments are attractive as inflation hedges for protection.