Understanding Inflation; the US Money Reserve

The effect of inflation cannot be overstated. It is one of the most important signals of how the economy is performing. Due to inflation, you notice changes everywhere including the price of meat at your local butchery.



The US economy is now doing at an inflation rate of 2.1%. It is a cause for alarm for a number of traders and market players. The question that begs, therefore, is, should ordinary citizens like you and I worry about the trend?



Well, the US Money Reserve has the requisite expertise to help you guard against inflation effects. But you must fully understand what inflation means. The rate at which the prices of goods and services increase over a given time frame within an economy constitutes inflation. The CPI (Consumer Price Index) is used to measure inflation; although it can be measured in other ways.



The prices of household commodities are tracked on daily basis. The changes in the prices of such commodities are reported after a given duration. Practically, then, if the CPI reads 3%, it means that we are spending 3 times more on items this year compared to last year.



The effects of inflation can be felt and seen all over the place. According to the data availed by the US Labor Department, the Bureau of Statistics, meat prices for chicken were $1.42 for every pound bought, in January 2017. However, in 2018, the prices of the same product shot to $1.51 for a pound. The chicken meat price change was 6.3 percent. Do not mistake the 6% to represent inflation though. Inflation is arrived at after considering a number of product price changes over a period of time. Chicken meat is just one of the many products that qualify for CPI data entry.



How an Increase in Inflation Rate Harms Your Pocket; Advice from the Money Pundits



Generally, inflation interferes negatively with the average person’s purchasing power. It is also a bad influence on the value of money. It devalues a currency. On the other hand, if inflation is low, it means that the prices of commonly used commodities have fallen drastically. Such a scenario means that spending is restricted to a certain extent. The US Money Reserve Master Numismatist observes that the overall effect of low inflation is, therefore, greater recession.



Well, without taking you round a labyrinth of the meaning of the economic terms and scenarios, here is what inflation really means for you in your daily activities. Firstly, high inflation undermines your power to buy. In other words, your lifestyle might be negatively disrupted when there is high inflation. Such a scenario is typically true if there is no accompanying increase in one’s income.



About the US Money Reserve



The company is one of the major distributors of US government coins. The company is involved in choosing the most precious metals for making the country’s coins. They also choose valuable metals for company portfolios. The company also specializes in advising traders and other entities on the value of precious metals such as gold, platinum, and silver. The US Money Reserve is headed by a former Mint Director of the US. He enriches the company’s experience in precious metals; considering the positions he has held previously.

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