Dear Reader,
When the end of the month rolls around, you might notice there’s less money in your checking account. Surely, you’re swallowing hard at the gas pump. And you probably heard that this week, inflation hit levels not seen since 1981.
Is there anything you can do ease the pain?
MLive can’t change the Fed rate or release oil from America’s strategic reserve. But our journalists are doing their best to explain what’s happening, why it’s happening and what you can do to save money and protect your investments.
Lindsay Moore, economy reporter for our statewide team, and her colleagues have written many stories in recent months on the spiking interest rates, the volatile labor market, budgeting, home and rent and gas prices and more.
She is coming at it from two angles – as a journalist, and as a millennial who already was dealing with economic issues unique to younger Americans.
“History does repeat itself – to an extent. I don't think my generation realizes that we had been living through a historically low period of inflation before this,” Moore said. “The pandemic has obviously changed the world, but there are a lot of trends from the ‘70s and ‘80s that are relevant today.”
The circumstances of the economy have changed over those decades, and there are many current “macro” factors that affect it – global trade, war in Ukraine, interest rates, supply chain issues.
But one thing has never changed: When prices are soaring, the effects ultimately hit individuals and families directly in the pocketbook.
For instance, inflation is costing the average Michigan household $300 extra per month. And it’s the staples that are causing the most hurt – housing, gasoline and groceries.
“Folks are really feeling inflation because the categories that are jumping up in price are the basics,” Moore said. “It's hard to avoid buying groceries or putting gas in your car.”
Shannon Murphy is MLive’s editor who oversees our economy reporting.
“There isn't a person, or pocketbook, that isn't feeling the effects,” Murphy said. “Our goal in our reporting is to really show people what inflation means in day-to-day life, what gets hit by it and why and, where we can help people navigate a world that is much more expensive than usual.”
One example of that “solutions” journalism is a piece Moore wrote last week on how individuals and families can rework their budgets for high prices, debt and investments.
Another story showed how up to a million Michigan families can qualify for money to help with groceries.
“Sometimes it's an old-school approach of asking people in the checkout line or at the pump,” she said. “Social media has come in handy for finding people across the state. It’s been gratifying to hear how this looks different for a family of four in Cadillac versus a young couple in the U.P.”
Moore notes that the “first tab on my computer” is the Consumer Price Index – the updated data set that tracks housing, energy and food costs right down to the price of ground beef.
She’ll keep a close watch on that and, in turn, MLive will keep you informed and empowered until we ride this out.
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John Hiner is the vice president of content for MLive Media Group. If you have questions you’d like him to answer, or topics to explore, share your thoughts at editor@mlive.com.
