The psychology of inflation plays a significant role because it impacts individuals differently based on their personal circumstances. For homeowners with fixed mortgage rates and minimal debt, inflation may pose little threat to their financial stability. However, for renters, prospective homebuyers, or those needing to purchase big-ticket items or borrow money, inflation can be severely detrimental. This disparity in experiences contributes to widespread skepticism about official inflation figures, as people feel the impacts of inflation vary greatly from what is reported by the government.
Posted: 2024-04-19 12:11:35.000000