In recent news, inflation rose in the month of August to an at least 3.7% increase. This marks a raise from 3.5% in July and is the highest reported level since October of 2018. The Central Bank has stated that the current government has been actively fighting to reduce the unfortunate inflation rates in order to better the economy.
In order to combat the ever-increasing inflation rate, economists have proposed raising taxes, changing the cost of imported goods, and increasing the amount of money available on the market. These solutions have been presented in efforts to limit the overall increase in prices for good and services. So far, the efforts from the federal government have been able to reduce the growth of the inflation but have not been able to reduce the overall inflation rate as of yet.
Unfortunately, the inflationary pressures have ultimately created a difficult situation for the average American, particularly in terms of the purchasing power of their wages. As prices continue to increase, the amount of goods and services remain relatively the same, creating an unfortunate situation for many citizens.
It is safe to say that inflation is something that requires constant monitoring and a sense of urgency. Despite the efforts of the government, inflation is still somewhat out of control and must be addressed accordingly. As we enter into September, individuals and business owners alike can only hope that the government succeeds in their mission to reduce these high soaring inflation rates. Only time will tell, and the actions of the Central Bank have the ability to shape the future of our economy.