News You Need To Know on Dec. 28, 2022

Look back at 2022

If there was an incident affecting people’s finance in 2022, it was inflation. We are paying much more for basic things these days compared to a year ago. The gas prices were shot quickly in view of the invasion of Russia in Ukraine. Prices have been up and down since then, but by the end of the year, they returned to the level of pre-infection.

Nevertheless, it is worth keeping things in perspective – even at 2022 high levels, gas was actually inflation in the past if you take into account inflation.

Gas was not the only thing in which the price increased rapidly. The cost of food, especially groceries, dramatically roses, at the point where some people began to be surprised whether it was now worth cooking instead of eating outside at home.

According to a survey by The Balance, inflation and high interest rates also have 38% of American adults to delay major milestones like buying cars or houses this year.

Does a bright side grow for all those prices? Social security benefits recipients received their biggest growth since the 1980s.

The second half of the year saw a gradual cooling of inflation as the supply chain backlog cleaned and the Federal Reserve continued its aggressive campaign for anti-inflation interest rate hike. Nevertheless, the price increase is well with the 2% target of the Fed.

If you are tired of inflation to finish your wallet, don’t worry – we must have seen the worst in 2022. Economists are predicting that inflation will move 2023 and beyond.