Inflation reaches 9.1%, Highest Increase in the Last 40 Years
In a recent study conducted by Smartest dollar residents in Montgomery have seen a wage increase of about 3.1%. Meaning people are getting paid more money now than they were before and during the start of the pandemic. although we are seeing an increase in wages, the inflation rate is growing faster than we can keep up with.
“What that tends to show is that wages really don’t rise nearly as fast as inflation rises so while those increases in wages do offset that inflation to a degree usually when inflation starts to rise like this people will end up relatively poor.”- Dr. Dove
With prices rising so quickly, workers are discovering that their increased pay does not go as far as they had hoped.
people are making more money but are also spending more money for everything including food, gas, bills, real estate, travel and more..
“We think that uh the probabilities of a recession are almost guaranteed.” – Mr. McDonald
“so if the purchasing power of the dollar falls then that means that you and I as consumers and individuals are able to buy less with that same dollar than we were before.”
The labor department reported Wednesday that inflation hit 9.1 percent for the 12 months ending in June. That is the largest increase since 1981.
“The situation that we are in today, an entire generation has never been in this situation so every one of them is having to learn as we go. Everyone really needs a financial plan they need to manage the balance sheet they need to manage their income statement and they need to manage their investment portfolio as well.”
Local economist say not to panic and that their may be hope that this situation could improve
“Its really going to come down to seeing you know what sort of policy options are on the table and especially how the federal reserve responds to much of these numbers and much of this information um so hopefully we can pull out of it.”
