Chris Worby is a Trusted Regina based financial advisor and Wealth Management services provider. With over 20 years of experience, Worby Wealth Management has been committed to providing a high standard of financial service to individuals, families and business owners in Regina and area. Worby Wealth Management listens and provides a personalized financial plan. In their latest Worby Wealth Management Trusted Regina Financial Tip, they share details about inflation.
By Jeremiah Worby - April 2023
Inflation is when you inflate your tires with air. Inflation is also an economic term that
refers to the increase in the price of goods over time. The latter will be the
focus of this article. This increase in
prices can be caused by a variety of factors, including supply and demand as
well as changes in interest rates or government policy. Inflation can make it difficult for people to
plan their finances effectively because they have less purchasing power with
Break it down for me
Inflation is measured using the consumer price index
(CPI). CPI is a measure of the changes
in the cost of living for consumers, including food, housing, transportation,
healthcare and entertainment. The CPI measures price changes for all urban consumers
by calculating average expenditures for each category.
Supply and Demand
The main factors that cause inflation are supply and
and demand are how much of a good or service is available, and how much people
want to buy at any given time. In
economics, there is only so much money in circulation (the supply). People will spend their money on goods and
services, which creates an increased demand for those goods and services – and
therefore an increased price for them.
Hard to Predict
Will Tom Brady be inducted into the Hall of
Fame? Some things are easy to
predict. Inflation is not one of them as
it has a big impact on the economy. When
inflation rises, it's usually because the quantity of money has increased
faster than the goods and services available for purchase. In other words, there is more money available
than there are goods and services in circulation. As a result, companies may raise their prices
in order to maintain profit margins or simply keep up with rising costs
associated with production.
However, if companies raise their prices too much
without enough corresponding demand for their goods and services – or not
enough supply of them – then inflation will decrease as people will buy less
from those companies or stop buying altogether for fear that prices will
continue to increase over time. The
result is often called “stagflation” (a combination of "stagnant"
economic growth coupled with inflation).
can also cause decreases in employment or increases in commodity costs such as
food or fuel. This can lead consumers'
purchasing power down while putting pressure on businesses' profits by reducing
demand for products thus increasing unemployment across sectors. For example: If consumers spend less time
driving to go shopping due to rising gas prices, then fewer products will be sold
at grocery stores or department stores which would decrease profits.
Inflation is a
complex topic, and this article only scratches the surface (it will not scratch
that impossible to reach spot on your back).
It’s important to understand how inflation impacts your personal finances,
but it also affects businesses and governments as well. Inflation can be hard to predict and can have
a big impact on the economy. The two
main factors behind inflation are supply and demand. Inflation is generally caused by an economy
growing too quickly and demand for goods outstripping supply.
If you have
questions about inflation or what you can do to fight against it, then contact Worby Wealth Management to get your
questions answered and start investing today.
Some of the services that Worby Wealth Management can help you with:
TRUSTED REGINA FINANCIAL ADVISORs Chris & Jeremiah Worby from Worby Wealth Management help you live your dream!
comments contained herein are a general discussion of certain issues intended
as general information only and should not be relied upon as tax or legal
advice. Please obtain independent professional advice, in the context of your
particular circumstances. This Blog was
written, designed and produced by Jeremiah Worby and Chris Worby for the
benefit of Jeremiah Worby and Chris Worby who are Financial Advisors at Worby
Wealth Management, a registered trade name with Investia Financial Services
Inc., and does not necessarily reflect the opinion of Investia Financial
Services Inc. The information contained
in this article comes from sources we believe reliable, but we cannot guarantee
its accuracy or reliability. The
opinions expressed are based on an analysis and interpretation dating from the
date of publication and are subject to change without notice. Furthermore, they do not constitute an offer
or solicitation to buy or sell any securities.
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