I am not a economist so I don't have a lot of analysis to provide on this subject. The question presented for discussion is how bad is inflation going to get?
Its definitely happening.
https://www.cnbc.com/2021/06/19/how...your-pocket-and-what-you-can-do-about-it.html
You’re not imagining it. Things don’t merely seem more expensive these days —
consumer prices are actually accelerating at their fastest pace in 13 years. This higher inflation doesn’t just affect the price you pay at the register. It can also have an impact on your major purchases, investments, and more. And for communities of color and the income-constrained, that impact may be magnified due to higher levels of debt and structural unemployment, both of which may make the experience of inflation more challenging. Here’s how inflation may affect you and what you can do about it.
According to financial expert and CEO of
Torch Enterprises, Dr. Pamela Jolly, while the impacts of inflation may be felt across all income levels, “People who are either income constrained or have inconsistent income streams will feel the most impact.”
Though the overall Consumer Price Index rose by 5% year-on-year in its latest reading, not all consumer goods accelerated at the same pace.
The greatest price increases were concentrated in energy, commodities, and transportation (gasoline, for example, rose 56% over the past year, while used cars and trucks were up nearly 30%). That means, that at least in some cases, savvy consumers can take certain steps to minimize the impact of inflation on their pocketbooks.
Its happening in England to
Rising inflation could cut average household incomes by £700, study suggests
https://uk.finance.yahoo.com/news/rising-inflation-could-cut-average-230100349.html
Inflation is on course to increase above 4% in the coming months, reducing average household incomes by £700, research suggests.
The Resolution Foundation said higher than expected inflation poses more of a challenge to household incomes than to the Bank of England.
The think tank said UK inflation has mirrored trends in the United States, when the rate is increasing.
It added that near-term inflationary pressures in the UK are less stark than the US.
The Foundation’s analysis showed that while the UK is unlikely to experience the same inflation peaks seen in the US, if commodity prices remain at their current levels, CPI inflation could rise above 4% later this year, more than double the rate of inflation forecast by the Bank of England for the third quarter.
James Smith, research director at the Resolution Foundation, said: “With the US experiencing the fastest rise in inflation in nearly half a century, and the UK also experiencing sharp increases, many people are getting increasingly worried about a possible price spiral.
“While UK inflationary pressures are nothing like as stark as the US, we could still see inflation breaching 4% this summer, a figure well in excess of the OBR and Bank’s expectations.
