Inflation is defined as the general upward price movement of goods and services in an economy. The key word is general. Inflation tends to be uneven and affects the price of some items more than others. If you’ve been in the market for a used car, you’ve learned a critical economic lesson about the uneven side of inflation. The overall rate of inflation has been five percent for the past 12 months. Meanwhile, the average price of a used car is up 30 percent from a year ago. Various factors drive used car prices, but most of the trouble links to the global microchip shortage. Demand for used cars may well slow later this year as automakers return to normal production levels. As the market shifts, some people who bought used cars may learn another key economics lesson: they might owe more for their car than what it’s worth as prices return to historical levels. The most important takeaway is that inflation touches our lives in different ways. A financial advisor can help investors weigh the impact of inflation and other important considerations when financially planning and investing for the future.
Scott Johnson is the CEO of DecisionPoint Financial, LLC. He is a CERTIFIED FINANCIAL PLANNER™ and an Accredited Investment Fiduciary. He and his firm provide comprehensive financial planning and investment management services to individuals and institutions. Scott can be reached at (480) 553-6249 or scott@dpplanners.com. Visit decisionpointfinancial.com.
DecisionPoint Financial, LLC is a Registered Investment Advisor. All investments involve risk. Risks associated with investing in securities include increased volatility and loss of principal. Past performance is no guarantee of future results. The information herein is educational in nature and does not represent investment advice. All rights reserved. DecisionPoint Financial, LLC © 2021.