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Frequently Asked Questions(FAQ)

Why is inflation so high right now?

According to the Bureau of Labor Statistics (BLS.gov), the past few years of inflation have been largely driven by the COVID-19 pandemic and its economic impacts. For example, occurrences like interruptions to the supply chain and a tightened labor market led to recent increases in inflation.

What investments beat inflation?

There's no guarantee an investment will beat inflation, but some inflation-geared investments include real estate, commodities, gold, and Treasury Inflation-Protected Securities (TIPS).

Who benefits from inflation?

Winners during times of inflation can include consumers with fixed-rate loans, individuals who own land and other physical assets, and companies who can increase earnings without raising wages a commensurate amount.

Who is hurt by inflation?

Inflation hurts consumers whose wages do not increase fast enough to keep up, as well as individuals with fixed incomes who must cover cost increases with the same amount of money.

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About the Authors

Holly Johnson

Written by: Holly Johnson

Award-Winning Personal Finance Contributor

I’m a professional writer who is obsessed with money, travel, and budgeting.

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