Inflation
Over the last few months the average price of a basket of goods has increased by 1.2%. What kind of an impact does this have on the purchasing of a consumer. It seems to me that this would decrease the amount of products that consumers can afford to purchase. In the article it is said that this is a cause from hurricane Katrina. Does a hurricane really have this affect?
1 comment:
Katrina may rise the price in the nation, and in this case, consumers' purchasing powers are turely diminished. but not all inflation decrease our purchasing power. when an inflation is correctly anticipated, both nominal wages and nominal incomes will be brought up, although we pay more on the same basket of goods we buy, our purchasing powers are not affected since our incomes have increased
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