For everyone responsible for handling their Carmel household expenses, the steady barrage of inflation examples is changing long-standing buying patterns. Their own latest experiences at the gas station or supermarket are impossible to ignore—most local Carmel householders hear the latest percentages and mentally confirm them.
When the official government figures were in the low single digits, there was little incentive for worrying about what seemed to amount to mere pennies. Everyone took for granted that dollars lose a bit of buying power over time—but economists remain unanimous in their opinion that some inflation is actually a sign that things are on the right track.
Nothing to worry too about.
It’s a different story today. The latest inflation number now weighs in at close to double-digits. June’s 9.1% U.S. government CPI data hit a 40-year high—a number that most Carmel supermarket shoppers would confirm: “Let’s see, now: this dozen eggs costs $x.xx…less 10%…YES, by golly: it was more like $x.xx last summer….”
One facet that’s getting little attention is the cumulative rate of inflation. The figure that gets all the attention is the single-year percentage—but as time wears on, the effect of multiple years of inflation is more dramatic. The cumulative effect may not be literally exponential—but it is greater than simply adding one year’s inflation rate to the next.
A simple calculator that shows the effect between any two years since 2013 can be found at US Inflation Calculator—a site you may want to visit from time to time. Whether you are planning to buy or sell most anything (including Carmel real estate), keeping in mind how inflation alone affects the dollar cost can be a reality element to integrate into your planning. When it comes to Carmel real estate, the latest local comparable sales results constitute equally vital ‘must-know’ data. Call us for those!