Many people are still having a hard time with their money because of high inflation. A poll of about 650 Americans found that inflation was the main cause of their financial stress and that they were living from salary to paycheck.
Online, Jenn Lueke creates recipes and teaches people how to cook on a budget. She spoke out about the rising prices and said, “I think it’s no secret that prices are going up in pretty much every area right now.”
Lueke turned a $50 to $75 buying list into five different recipes last year. She did this to show families that they could save money and still eat well.
“It’s really tough. I’m not here to spread harmful good vibes about how to save money on shopping. Leuke said, “I’m just trying to give people the tools they need to feel like they have some control over their food costs.”
Lindsay Owens, who runs the non-profit think tank Groundwork Collaborative, talked about inflation and how people are reacting to it. She said, “I think Americans are a little confused when they hear in the news that inflation is going down but don’t see any price drops.”
Disinflation and deflation are two different things that economists have talked about. Deflation means that prices are going down instead of up, while disinflation means that prices are going up more slowly.
Prices tend to go up more quickly than they go down, and when they do go down, it’s usually because people are spending less. That’s not the case here, though, since people are still paying the same amount as before.
“This cycle is a concept called the money illusion,” says Sabrina Romanoff, a clinical psychologist. “People who are fooled about money don’t think about how much inflation there is in an economy.” They think that a dollar today is worth the same as it was a year ago, which is not true, she said.
