Inflation Reporting's Blind Spot: The Cumulative Impact

Traditional inflation reports, focused on the past 12 months, overlook the broader, cumulative impact of inflation since the start of the Covid period in January 2020. This period, marked by significant monetary expansion and near-zero interest rates to combat the recession, has led to a 20% cumulative inflation rate. This means a dollar now holds only 83 cents of its January 2020 value, highlighting the sustained loss in purchasing power. This overlook in reporting fails to account for the lasting financial strain on those whose incomes have not kept pace, exacerbating financial disparities.