Market MakeHer Podcast

15. What's Going on with Inflation? (Inflation Explained)

Oct 4, 2023
Dive into the intricate world of inflation and discover what it really means for your wallet. The hosts break down the different types of inflation—demand-pull and cost-push—using relatable examples. Unpack the shocking causes of the recent inflation surge, from COVID impacts to geopolitical tensions. Learn how rising prices affect purchasing power and why investing is critical to keep up with inflation. Insights into how the Fed tackles these issues provide a clear view of the economic landscape. Ready to make sense of money?
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ANECDOTE

Conference Room Inflation Auction

  • Jess Inskip ran a classroom auction game using fake money and identical bags to demonstrate inflation.
  • Winners bid more as more money entered the game, showing prices rise for the same items.
INSIGHT

Inflation Means Falling Purchasing Power

  • Inflation measures a decline in money's purchasing power, tracked by CPI and PPI.
  • The Fed targets about 2% inflation for steady, sustainable growth and wage durability.
INSIGHT

Rising Costs Push Prices Up

  • Cost-push inflation happens when rising production costs (labor, materials, energy) force firms to raise prices.
  • Supply chain issues and higher commodity prices amplify these cost pressures across industries.
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