Too often we consider things based on labels, assumptions, etc., rather than digging deeper and considering the actual effects, consequences, and possible paths
One of the hottest topics these days is inflation and what it can mean for all of us! However, these ideas often proceed in overly simplistic ways that have little purpose, relevance and/or consistency. In fact, most people are influenced by inflation and inflationary tendencies, but few focus on common sense ideas! With this in mind, this article will attempt to briefly consider, evaluate, research and discuss the 5 areas where most people are (or soon will be) experiencing inflation to a great extent.
1. Groceries/Household Goods: Anyone who has gone to the supermarket has noticed that their items like bread basket, groceries and other household items have increased significantly in the past year! Where did it lead? Probably the single biggest factor is the supply chain, as commodities are more difficult and expensive to consider! One factor is of course supply and demand. This concept says that when supply does not keep up with demand, prices usually rise! Another factor is probably greed and is also related to the outcome and impact of the pandemic. How long will this continue and what strategies can solve it?
2. Energy/Oil & Gas etc.: We are seeing rising electricity rates and heating costs too! Oil and gas prices are rising rapidly, and making everything else even more expensive!
3. Gas/Fuel at the Pump/Station: We are at near or record high prices for what we pay at the pump! Some of this comes from rising labor costs, while a lot is also due to greed for some or all of the components in the supply chain! President Biden has just released some of our strategic oil reserves to attempt to offset the short-term effects of increased requirements and the consequences of supply and demand! Admittedly the United States is now the largest producer of oil, we can’t just blame OPEC, etc., but we have to realize that this is a multidimensional, overall inflationary trend, etc!
4. Housing Costs (Sale Price, Repair/Renovation, Rent, etc.): In most geographies, the cost of buying a home has increased dramatically over the past year! Some of it has to do with supply and demand, the implications of a constant seller’s market due to lack of inventory in demand. Some because of the effect on monthly payments because of the lower mortgage rate buyers can afford. Some of it has to do with inflation, but either inflation has increased house prices, or this increase is contributing to the overall rate of inflation! Remember also that we are seeing this trend because of the consequences, the thought processes and perceptions created by the terrible pandemic! Because materials and labor have become more expensive, we are facing much higher costs for repairs, renovations, etc.
5. Dining Out/Entertainment: Restaurants, like any other industry, feel the cost of inflation! Challenges, access to aid, increased cost of labor and food, utilities etc led to a significant increase in prices, cost of food etc.! The cost of entertainment has gone up due to the many effects and consequences of the pandemic and inflation!
Inflation is there, but for how long? Many factors will determine long-term results, but it is certainly wise to proceed wisely and be prepared/ready!
Richard has owned companies, COO, CEO, Director of Development, Consultant, professionally managed programs, consulted thousands of leaders and conducted personal development seminars for over 4 decades. Rich has written three books and thousands of articles. His company PLAN2LEAD