When the word inflation starts hitting the news, people have a reason for concern. Inflation means that your dollar will buy less than it did a year ago—possibly even just a couple of months ago. Although some amount of inflation is considered normal and possibly even beneficial in a market-based society, a high rate of inflation is a different matter entirely.
Right now we’re facing that latter situation. Accoding to U.S. News and World Report, inflation has risen this year by 1 percent each month, and has risen 8.6 percent over the past year. Although some prices, in categories such as electronics and apparel, have dropped, other prices rose enough to counter the overall effect.
