Inflation, a word that I can ensure you have heard some time in recent years. But, have you ever really thought about inflation? Recently, you might have noticed an increase in normal purchases, ranging from gas to your favorite snack, the price increase is due to inflation.  Inflation is when prices of an economy often rise due to a specific event. Speaking of modern-day, inflation prices have spiked due to the recent outbreak of COVID-19. The economic shift within the past few years has changed the value of a large variety of markets within the United States.

Specifically, gas and oil markets were hit the most by inflation. According to CNBC in 2022, gas prices were increased by over 50%. This was a huge market to shift as people often use gas and oil every day. This market shift is leading to consumers choosing to redistribute their money elsewhere. Many Americans are choosing to dine out less and spend less money on leisure activities due to the spike in inflation. This causes a chain reaction as small businesses and restaurants are also being affected by inflation, they are forced to raise their prices while receiving fewer customers due to this market shift.

According to CNBC, budgeting became a massive part of 2021 due to the increase in inflation. As seen in the chart, many Americans are budgeting their income more to fulfill specific needs leading to a decrease in happiness. While inflation specifically touches huge markets such as oil and gas, the lasting chain effect leads to Americans needing to change their lifestyle.

Budgeting is an increased strategy that followed inflation. However, Americans choosing to budget more is a positive effect of inflation. Budgeting can often help one spend their money wisely. Whether it’s simple grocery shopping or important bills such as tuition or rent, budgeting can help make your life easier by keeping track of how much you spend.

This is what increased during the increase in inflation, people were keeping an eye on the amount of money they spent and cut back on different spendings ultimately leading to a stronger budget. Americans cutting back on purchases that are not deemed important helps them in the long run.

Ultimately, it’s hard to predict what path inflation will take. Being 2023, different government officials and the president are trying different tactics to bring the economic market to peace. However, it’s not as easy as it sounds. Keep an eye out on the news and different articles to follow along this “inflation journey”.