By: GreatAmerica: Inflation rates are rising at the fastest pace since May 1981. But what does that mean for your business?
Media headlines point to continuously rising U.S. inflation rates that impact businesses and consumers alike. No one wants to hear their dollar is losing value but inflation also indicates there is more money available to consumers, an increased product demand, and climbing wages.
A small inflation rate increase is good – it signals the economy is progressing. The Federal Reserve aims to level the rate between extreme inflation and deflation. This equates to average inflation rates around 2% over time.
Back in summer of 2021, members of the Federal Reserve predicted the then high rates would wane prior to the end of the year. Yet, rates remain higher than ever, with no clear end in sight.