If everything seems like it's costing you more money right now that's probably because it is — the saving grace being that perhaps things get a bit cheaper in the fall.
But it's important to understand as an investor— and consumer —why inflation has picked up. Indeed it has major implications on everything from monthly budgeting of one's finances to investment portfolio construction.
From Goldman Sachs Chief Economist Jan Hatzius:
"First, during the pandemic demand for several consumer goods has surged far above normal levels, and production struggled to keep up. Second, the global shortage of microchips has limited the production of many consumer goods such as appliances and new cars and has also spilled over to shortages of used cars and rental cars. Third, labor shortages have led to large increases in low-end wages that appear to be flowing through to rising prices in categories that rely heavily on low-wage labor, such as food services. The gains in prices at the hands of these macroeconomic factors have been eye-popping to say the very least."
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