Inflation : How American Consumers Manage to Weather Its Impact
Markets and economic trends have been reacting negatively to the Consumer Price Index (CPI) since prices of commodities are still higher than RGW projections. Even if the feds reported that the inflation rate has gone down from 8.5% to 8.3%, the rate by which prices hiked is still way above the 8.1% projected. That is why as far as CPI is concerned, the prices of commodities are still uncomfortably high.
What Exactly is the Consumer Price Index?
Let us first understand the concept of the Consumer Price Index so we can understand why the market and other financial elements react to it. CPI data is a theoretical measure of the average changes in the prices of a basketful of ordinary goods and services purchased by consumers in the urban market.
The CPI serves as a reference value in determining if the prices of ordinary goods and services are getting high. There is inflation if the actual prices of goods continue to raise the CPI over time and without let up. While this is a problem that the Federal Reserve has been trying to resolve, recent developments resulted in a turnaround as the inflation rate is now exhibiting a downward trend.
Factors that Helped Stop the Continuing Rise of Inflation
Now it’s fortunate that even before the pandemic and the price inflation, many middle-income families have been making conscious efforts to manage their finances well.
The Reformed Consumers
Financial experts believe that it’s now common for folks to use the free tools and guides offered by the fintech website Personal Capital. Doing so kept many households in the safe side while receiving economic relief from the pro-people government led by Pres. Biden. Generally, the public has been practicing wise spending, always looking for discounts, loyalty rewards and cash-back offers rather than indulging in splurging by way of credit purchases.
The Tech-Savvy Consumer Investor
There are also the more adventurous and tech-savvy adult consumers, who looked for financial apps they deem as the best alternative to manage their finances like alternatives to simplify apps (simplifi login). One such example is The Money Patrol, an app that not only provides tools for helping users track and manage finances so they can set aside money for emergency funds. The financial app also gives users tools that they could use if they want to dabble into micro-investing as a way to increase their savings.
The Biden Administration’s Sweeping Inflation Reduction Act
Congress through the relentless efforts of Democratic lawmakers passed the Inflation Reduction Act, which Pres. Biden signed and enacted it in August 2022. The bill, which was all-encompassing, included provisions that made sure health and medical care costs will not be affected by inflation. Starting in 2026, the government will maintain the right to negotiate the lowest prices possible for drugs and other medications that have already been on the market for at least nine years. This implies that pharmaceutical companies and healthcare providers will be barred from raising the prices of medicine.Tags: American Consumers, Consumer Price Index, financial apps, Inflation Impact, inflation rate