Inflation peeks over the horizon

I’m no economist, but I do know a little about how our economy works.

I think inflation is about to raise its head and sneak into our lives once again.   I base that statement on observation and not by any calculations by those in the know.

For the last decade, we’ve been around right around an annual inflation rate of about two percent.  Actually, just a little below two percent.   The federal government would like us to be around three percent – a level they think we need in order to keep job growth high and and the economy growing

So far this year , we’re running just over two percent, but I see signs that the rate will soon rise.

Locally, we can see inflation in three different areas – – housing, meat and gasoline.  There are independent reasons for the increase in price for all three of those areas, but added together I see troubling times ahead for those on a fixed income.

And, most of us on a fixed income can remember the 1970’s and the 13 percent inflation rate which hit this country so hard.  We don’t want to go back to those days, but many of our elected officials weren’t around then and many people have never seen high interest rates brought on by inflation, or the cost of living so expensive that we didn’t know how we would survive.

I’m just calling attention to the future.  The signs are there.