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Inflation is at its highest rate in four decades. What does the number really mean for you?

The Labor Department said Thursday that consumer prices jumped 7.5% last month compared with a year earlier, the steepest year-over-year increase since February 1982.

News 12 Staff

Feb 11, 2022, 1:13 AM

Updated 861 days ago


Inflation soared over the past year at its highest rate in four decades, but what does this number really mean for you?
"People are feeling it, they feel it at the pump, they take a look at their grocery bill, no matter where you go, you're getting hit one way or another,” says Chris Markowski, with Markowski Investments.
Inflation is driving up prices around the country, with the latest Consumer Price Index showing food prices up by 7% over the last year, and energy costs for goods like gasoline and home heating oil spiking 27%.
"The economy seems to be doing fairly well, people are making more money, however that money is spoken for due to inflation,” says Markowski.
Markowski is a former investment banker who's now an advocate for investors, through his radio show Watchdog on Wall Street. He says the wage increases some workers are experiencing are being offset by inflation.
"Inflation's a tax, that's all it is,” says Markowski. “It's a hidden tax that everybody has to pay. The value of your money decreases."
Since inflation hits essential items such as food and electricity for your home, consumers can't do much to fight it.
"When a larger portion of your money is devoted to those things, it really hurts,” says Markowski.
But who's to blame? Markowski says it's both President Joe Biden and former President Donald Trump -- Republicans and Democrats who approved massive spending and stimulus as the economy took a major but temporary hit from COVID.
"We've increased the money supply by almost 50% in a very short period of time,” says Markowski. “We spent $5 trillion plus on covid relief. All of that money has flooded the system."
Even with help for hospitals in the COVID relief bills, the cost of medical care is up nearly 3% since last year.
The cost of going out to eat went up 6.4% over the last year, according to the consumer price index -- the biggest jump since January 1982.

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