Inflation Is Causing This “Side Effect” Among Americans
(DailyDig.com) – Inflation is undoubtedly putting the hurt on Americans. People in the US are facing higher prices for food, fuel, and services. But inflation impacts more than people realize, and it’s not just about paying higher prices. The economic spiral completely changes the way people spend and save their money, which can have other hidden effects.
🇺🇸 The rise in inflation affects much more than just prices. These are additional effects you should know https://t.co/B2cO3H7ZB9
— Neil Saunders (@NeilRetail) June 19, 2022
Inflation has hit a four-decade high, and economists are expecting it to linger for a while. One way inflation has and will continue to impact many Americans is in their tipping habits. While there has been a reduction in the number of people going out to eat, already crushing food servers, those who still choose to are tipping less according to CreditCards.com.
Americans are already dealing with inflation, but they may also have to face the reality of shrinkflation, which is when suppliers reduce package sizes to indirectly pass along price increases to consumers. The founder of Consumer World, Edgar Dworsky, has been keeping track of company’s downsizing their products. Dworsky explained that suppliers know a majority of consumers are unaware of a product’s net-weight, making it less likely they’ll notice a difference. In other words, people are paying the same or higher prices for less product.
Inflation has even impacted the savings accounts of Americans everywhere, leaving people with fewer emergency funds. With less money on hand, more people are turning to their credit cards to cover surprise purchases. The Federal Reserve recently announced an interest rate hike to help cool inflation, meaning the debt consumers take on will cost more in the long run.
These are only a few examples of how inflation has impacted the American economy and consumers. People in the US are dealing with so much more, and the situation doesn’t appear to be getting better any time soon.
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