Inflation refers to the general increase in prices and the relative decline in a consumer’s purchasing power. Although some degree of inflation is considered desirable by monetary policymakers — in fact, the Federal Reserve aims for an annual 2% target inflation rate — but, when overshot, it can wreak havoc on the American consumer.
This is as true for consumers as it is for entrepreneurs. Take it from me, a serial entrepreneur over multiple decades, whose companies weathered years of relatively high inflation, such as in 2005 (3.39%), 2008 (3.84%) and 2022 (8.38%).
