The inflation rate is calculated by comparing the reporting month’s inflation to the same month the previous year. When inflation was high in the previous year, it may appear that inflation is slowing.

The inflation rate last July was 5.4%, so, with the July rate at 8.5%, consumers have seen prices rise 13.9% since July 2020. Does that sound like good news to you? Has income increased 13.9% over the past 24 months?

Since inflation was high for the remainder of 2021, you will be hearing claims that the inflation battle is being won but remember, it’s fairly certain those higher prices you’re paying every day will never come down.