By: Chuck Bentley, Crown Financial Ministries

Dear Chuck,

Inflation is hitting our family hard. We keep hearing it is coming down, but it does not seem that way when I go to the grocery store! When do you think we might see it return to normal? 

Irritated Over Inflation

Dear Irritated Over Inflation, 

You’re not the only one. Before the Israel-Gaza war, the April Pew Research Center report showed that a large majority of Americans were dissatisfied with the economy and the overall condition of our nation. In addition, confidence in the future has fallen from a year ago. You are right to be concerned about inflation. Some call it the “invisible tax” or the “silent thief.” No doubt, it robs families of the purchasing power of their income. 

The Silent Thief 

The Federal Reserve Bank of Cleveland reported in a paper titled “The Long-Run Costs of Higher Inflation” by Jean-Paul L’Huillier Bowles and Martin DeLuca, “Inflation imposes significant costs on society.” These costs appear in skewed markets and loss of purchasing power. Higher prices force consumers to invest less in order to have more cash on hand. In addition, inflation’s effect on taxes alters investing practices. When wages don’t rise along with prices, fewer goods and services are purchased, which negatively impacts business. Consumers negotiate wages more frequently and devote time and energy to coping with rapidly rising prices, and banks often decrease lending.

How Long Will It Last?

Bankrate’s Third Quarter Economic Indicator Poll reports that many experts don’t expect inflation to settle in at the Federal Reserve’s 2% goal until some point near the end of 2025. 29% expect inflation will cool by the end of 2024, and 29% say 2026 or later. No economists expect it to reach the Fed’s target by the end of this year. Yelena Maleyev, senior economist at KPMG, says, “The concern is rising food and energy prices which could have inflationary effects on other areas of the economy.”

The International Monetary Fund warns of stubborn inflation and weaker global growth in 2024. It increased the pace of consumer price increases across the world to 5.8%, up from 5.2% just three months ago.

How People Are Coping in America

• Prioritizing lower prices over convenience 
• Stockpiling sale products
• Buying regular fuel instead of premium
• Tracking gas deals and usage 
• Cutting back on discretionary purchases 
• Skipping vacations
• Postponing health care 
• Increasing credit card debt
• Decreasing savings

Adjust Your Budget and Perspective

Financial experts suggest cutting back on groceries, eating out, gas, self-care, entertainment and travel to gain margin in your budget. It also helps to keep it all in perspective. Economic conditions can change quickly. Adjust what you can while continuing to give generously and save for the future. Our real treasures are not here; they are being laid up in Heaven where inflation cannot steal them.

If credit card debt is a financial burden for you or someone you know, reach out to Christian Credit Counselors. They are a trusted source of help toward financial freedom.