The world is nowhere near the end of the Covid pandemic and the question most of us are asking is, what will the next year bring?

Then comes the question about the state of our economy. America’s prices are continuing to rise and consumers are feeling pressure in their spending on everyday goods and services.

According to recent data, 2022 maybe another year where we see the cost of goods, rent, and inflation to skyrocket.

CNBC reported two key factors that are adding to the Federal Reserve’s inflation worries.

Home prices continue to surge and are 41% higher than their last peak during the housing boom in 2006.

The S&P/Case-Shiller index, which measures home prices across 20 major U.S. cities, is seeing a significant increase year over year again and is now seeing its largest annual gain in history since 1987.

For perspective, the largest gain the index had seen was in 2005 when it hit 14.4%. That number currently stands at 19.1%

Then, as we all know, just three years later, we entered into a great recession that caused millions of Americans to lose their homes and caused one of the biggest stock market crashes in history.

Could this be a precursor to what lies ahead for us?

The Conference Board reported that the estimated inflation for 2022 is not looking good at all.

While the Federal Reserve labels a 2% interest rate as “healthy,” we are currently sitting around a 5.5% inflation level which is expected to increase in 2022 to reach as high as 6.8%.

That’s a full percentage point from where we were a year ago, according to the board.

But, nothing to worry about since the Fed states that inflation is transitory… Right?

Not according to former White House economic advisor Larry Summers.

Summers stated:

“Every time you hear that inflation is transitory remember that double house price inflation hasn’t yet shown up in the indexes. Housing represents 40 percent of the core CPI.”

Several big companies have already raised their prices thanks to rising inflation and consumers are left with no choice but to accept the hikes.

The world’s largest food group, Nestle, announced its plan to raise its prices in order to fight inflation next year.

“If we talk of 2022, it is likely that input cost inflation will be higher next year than this year.”

“Our strategy is to offset anything we receive through pricing. The idea is to pass it on to the trade and to consumers whenever we receive it.”

It’s about time that we created our own personal plan to offset inflation.

Call American Hartford Gold today at 800-462-0071 to learn how thousands of Americans are creating their plan with assets like gold.