Whether you’re paying for chips at your local store or trying to buy a house, the effects of Inflation have been felt in all sectors of society by everyone. As the US Dollar slowly loses value and the prices of common goods rise, it’s no wonder the cost of living is rising faster than we can control it. Yet, with inflation rising all of a sudden, it leaves a vital question: how did it get to this point?
There are some key arguments that help us understand the situation of our economy.
According to the U.S Bureau of Labor Statistics, “three main components explain the rise in inflation since 2020: volatility of energy prices, backlogs of work orders for goods and service caused by supply chain issues due to COVID-19”.
The pandemic played a huge role in the start of inflation increasing, with workers getting laid off and the economy coming to a halt. This continues to affect everyone years later, students and teachers alike so we decided to hear some of their views.
Brandon De La Cruz, senior, is one of many students who pointed out the price rise in daily essentials. “I noticed it because my In-N-Out order is like way more expensive than it used to be. It used to be around like 7 bucks and now it’s 10 or more.”
Different students rely on different sources to get their food, and not everyone has the luxury to have food at home. Brandon, like so many students, rely on eating out. Yet, even places that have been known as “cheap options” have begun to rise in prices.
“I had to go to McDonald’s now. The McChicken used to be less than 4 Dollars and now it’s about 5 dollars and some change.” quoted Brandon as what he has been doing to save cash during these hard times.
Those who have the option to eat at home, regular groceries are becoming expensive as well.
The United States Department of Agriculture is showing that “In 2024, prices for all food are predicted to increase 2.3 percent … .and food-away-from-home prices are predicted to increase 4.1 percent, with a prediction interval of 3.8 to 4.5 percent.”
This is higher than the average rate of Interest of 2-3% that we usually have. Not only students are being affected either, teachers have also been hit hard by inflation.
Ms. Enriquez, English Teacher, shines light on the matter, saying “The prices of everything have gone up, Groceries, Insurance, any time I go out to the store, everything seems to be $5 to $10 more than what they used to be.”
A report from Brookings Research Institution also found that “The chance that prices actually fall are very slim, although we have seen price declines in products like eggs and used cars.”
“For example, my car, I purchased it last summer and 5 Years ago with my old car, the Insurance Rate was 1.5%, and this time around, when I bought it last year, it’s now 5%.” stated Ms. Enriquez.
As of right now, inflation is expected to continue on an upward trend. Some hope the next President will be able to stabilize the economy, while others are doubtful. What is certain is that only time can tell whether inflation shall continue on an upward trend, or bounce back and head back down slowly.
By Marco Padilla, Staff writer
Photo Credit: Javier Ghersi/Getty Images – “Inflation cooled slightly in November, easing pressure on Fed”