In 2022, it seems that everywhere we turn we can’t escape talk of inflation.  It seems that all the talk of inflation is negative.  Should I wait until inflation settles down before I buy a new home or refinance my mortgage.  Should I be worried about inflation and the future of housing?

Inflation has been around as long as there has been commerce.  Like a bull or bear market, a red-hot economy or a rescion inflation is inevitable.  There may be long periods of time where inflation is tame.  Occasionally, there are even periods of deflation.  Those periods eventually recide and give way to inflation.

It is well known that inflation means higher costs.  Currently we are in the begining of an inflationary period.  We are seeing higher costs at the gas pump and in the grocery store.  These are the two items that initially alert people to inflation.   People tend to know what it cost to fill the gas tank and their standard order grocery cart.  If these cost inch up, we may not notice.  When these cost take a significant jump – it’s the dreaded inflation!

Most goods are shipped overseas, over highways, by rail or a combination of the three.  When the cost of gas increases it impacts the cost of shipped goods.  These increased costs get passed onto the consumer.  More inflation.

We may not as quickly notice the cost of our new sweater or blue jeans has increased.  Generally, we don’t buy these items as frequently as we stock up on groceries or fill our tank.  Still, this is inflation at work.

Inflation impacts big ticket items as well.  There are goods that we may buy only once every 5-10 years or so -appliances. furniture and cars.