invstr
Published in

invstr

Pay Cut ✂️

On Thursday, the US Labor Department released new inflation data, and it looks like your favorite Super Bowl appetizers are going to cost a lot more this year. The consumer price index for January increased 7.5% from last year-the highest inflation reading since 1982. Planning on serving some buffalo chicken wings, guacamole, and nachos for the big game? Food prices are up 7% over the past year. Need to fill up your car before you head to the watch party? Gasoline prices are up over 40% in the past year. All of this to say, inflation is affecting our everyday lives.

The monthly CPI rates were also higher than predicted, with headline and core CPI both increasing 0.6%. Following the report, stocks fell as investors became more concerned about rate hikes soon. The probability of the Fed rate increasing by 0.5% in March was 25% before the report. After the report was released, chances rose to 44.3%. Until inflation cools down, investors are going to continue to be concerned about potential rate hikes.

Inflation has masked the substantial pay raise those employees have seen. The 0.7% increase in wages was nearly offset by the 0.6% increase in monthly inflation, resulting in only a 0.1% increase in earnings for the month. Have you noticed the inflation affecting your paychecks?

No one knows for sure when this inflation will end. However, some experts have said the factors contributing to inflation in 2021 are likely going to continue pushing up inflation in the first half of 2022.

I am not a financial advisor and my comments should never be taken as financial advice. Investments come with risk, so always do your research and analysis beforehand.

Originally published at https://invstr.com on February 11, 2022.

--

--

--

Financial insights and news to helping educate investors. We deliver content from market leaders, academics, investors and more who are keen to share their intelligence on the latest business developments.

Recommended from Medium

Stop Paying The Hidden Tax

How a Tax Cut Turns Into a Tax Increase

How much is your government spending on infrastructure?

Unemployment rose slightly, but more realistic rate is higher

Brainard joins Fed chorus warning about fiscal stimulus risks | Reuters

A Simple Idea to Boost Job Creation

The Debt Ceiling Debate Is Just Really Dumb

Covid-19 Makes Your Life isn’t Easy as Usual

Get the Medium app

A button that says 'Download on the App Store', and if clicked it will lead you to the iOS App store
A button that says 'Get it on, Google Play', and if clicked it will lead you to the Google Play store
Invstr

Invstr

Build confidence, and invest with knowledge. Play, learn, & invest on the Invstr app today! Available on iOS and Android. https://invstr.com/

More from Medium

We Need to Talk About the Metaverse

Photo showing the right eye of a VR headset.

Opinion 12–30–21

What the heck is ‘Metaverse’?

Warner Music arrives in the metaverse of The Sandbox to create a world dedicated to music