If inflation is falling why are my bills still high?
Inflation is measured by the price of a basket of goods or products. For example, if the price of a basket is $100 and it increases by $5 over a period, the inflation rate is 5%.
In the next period, if the basket now starts at $105 and increases by $2.50, the inflation rate is 2.5%, indicating a decrease in inflation. However, this doesn’t mean prices have dropped; it simply means the rate of price increase has slowed. We still experience the impact of high prices.
To mitigate these effects, we can:
- Increase your employees pay,
- Advocate for tax reductions, or
- Future-proof our income to withstand high prices.