What gets us hyped up? Sabrina Carpenter’s new album! 💃 Just kidding, it’s the price of eggs reaching a new low. At Aldi this week, a dozen were under 3 smackeroos. Round of omelets for everyone on us. 🍳🍻
Speaking of hype, you may have heard a friend or two throw the word “hyperinflation” around. Yes, the thought of insane runaway prices is terrifying, but is it coming to America? 🤔
Here’s Five Fast Facts on hyperinflation:
- 🎈 Bloated AF - From food shortages to everyone pulling their cash out of the bank, hyperinflation can put a country into panic mode in less than a hot minute. While a high inflation rate is considered 5% or higher, hyperinflation occurs when it reaches 50%. According to the Fed, “healthy inflation” sits at 2%.
- 💵 Money Trees - People with the hyperinflation scaries think that because the Fed won’t turn off the money printer, the dollar will lose its value. If hyperinflation were to become a reality, average Americans would be quickly forced into debt, then bankruptcy.
- 🚀 GRWM: Hyperinflation Core - What would life in the hyperinflation machine look like? Pretty no bueno. Prices could go up weekly (or even daily) and bring a lot of drama. Say inflation rises by 5% every day. Your weekly grocery bill would skyrocket in no time flat, costing American households hundreds of extra dollars.
- 🧘 Breathe Out - The good news? So far, there’s no hard evidence we’re definitely heading off a hypercliff.In April, the Consumer Price Index (CPI) clocked in at 2.3%, the lowest its been since February 2021. Although we hit an inflation peak in June 2022 (9.1%), it was nowhere near the 50% inflation rate required to officially declare hyperinflation.
- 🤓 Hyper History - The highest inflation rate the U.S. ever had was 23% in 1920. Countries that have experienced hyperinflation in recent history include Argentina, Venezuela, and Zimbabwe. What was the worst hyperinflation in history? In 1945/1946, Hungary was slammed with a daily inflation rate of (wait for it)...207%. Yowza!
🔥Bottom line: While the price of a lot of stuff is still higher than Snoop, we can’t pull the hyperinflation alarm just yet. And we probably won’t pull it at all. In the meantime, can we at least get a raise? Oh, if you’re curious how the dollar gets its value, we break it all down for you right here.
How has inflation impacted your household budget?
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