As the year comes to a close, many are reflecting on a turbulent 2020, while cautiously anticipating what 2021 has in store. Economic data released in the last quarter of this year brings some much-needed holiday cheer, especially concerning inflation.
Inflation, or the rise of goods and services, has remained surprisingly steady this year, with economic experts noting that the rate of inflation has actually fallen in comparison to previous quarters. Some economists have attributed this decrease in the rate of inflation to the ongoing pandemic, with fewer consumers participating in the economy and spending less than they would have in a normal year. The decrease in the rate of inflation appears to be a sign of good news – if the economy is able to remain this stable during chaotic times, it is likely that it will be more able to handle and recover from any further disruptions.
However, with the giant stimulus packages issued by the government in 2020, many are concerned about the potential for a large spike in inflation in the future. These much-needed funds have been issued to both citizens and businesses in order to help in the recovery process, and the large amounts of money injected back into the market could lead to rapid inflation if not carefully handled.
It is reassuring, then, to see inflation data remain more-or-less the same heading into the new year. This, coupled with the promise of a vaccine that could help us put COVID-19 behind us for good, brings hope that the New Year could be a brighter one. The holiday season is supposed to be a time for joy and reflection, and these positive inflation numbers offer a well-duration glimpse of the possibilities that 2021 could have in store.
“Holiday Cheer From Inflation Data: Get Ready for Year-End!
