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Would you blow your nose on a $100 bill? Dive into Zimbabwe's jaw-dropping hyperinflation journey, demystify the buzz around inflation's bite on your buck, and uncover savvy strategies to keep your finances flourishing.
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In Zimbabwe in 2006, it was more cost-effective to clear your sinuses with a hand-full of cash than with a box of tissues.
Inflation was so severe that a single roll of toilet paper cost $145,750. A loaf of bread? $1 billion.
By November 2008, Zimbabwe's year-over-year inflation rate reached 89.7 sextillion percent. For those of you counting at home, that's 21 zeros....
Between steep gas prices and $13 Philly Cheesesteaks, consumer prices in the United States are rising at the fastest rate in 30 years. Some inflation isn't a bad thing — the Federal Reserve plans for a healthy inflation rate of 2% every year. As you can see on the chart below, we're at over 6% today.
Lots of factors play into this: labor shortages, increased spending, the Great Resignation, and supply chain issues. But there's hope that it's temporary. Have a listen to The Daily Inflation episode for best and worst case scenarios.
"Back in my day, I could go to the movies for .25 cents." Yep, your grandma was talking about inflation. Inflation is when prices for goods or services go up overtime, and your dollar doesn't buy you as much it used to.
Oh, this old thing? The Consumer Price Index (CPI) calculates the change in prices over the years using a hypothetical 'basket of goods'. It's a list of common household items like lightbulbs, ballpoint pens, and frozen peas.
It might've worked for the Money Heist team, but printing more money just makes every dollar less valuable. Here, this might help. (It might not answer your question, but it'll take you on a journey).
Some inflation is good. Too much is bad. The money in your savings account is worth less every day it sits there. And the stuff you buy at the supermarket or the plumber you need to fix your toilet? Also more expensive.
Some things to consider: