Bankruptcy: the annual inflation rate in August 2018 was 2.7%

Posted on October 2, 2018 · Posted in Bankruptcy

This is a slight decrease from July, when it was 2.9%, and a noticeable increase from 2017, when inflation was 1.9% in August.  Over the past 10 years, inflation has ranged from a high of 5.6% in July 2008 to a low of negative 2.1% in July 2009.

For historical perspective, negative inflation or deflation is rare and has occurred in only 37 months since World War II – 14 months in 1949 & 1950, 12 months in 1954 & 1955, 8 months in 2009, and 3 months in 2015.  Although double-digit inflation is more common, we are fortunate that this has occurred in only 61 months since World War II – 16 months from 1946 to 1948, 15 months in 1974 & 1975, and 30 months from 1979 to 1981.

Low inflation and no inflation are generally good for most consumer households, inasmuch as it means stable prices for those who wish to plan a budget for their living expenses.

However, for some, unexpected home maintenance, car maintenance, or family health costs can disrupt household budgets, even during times of deflation.  In these cases, borrowing may be unavoidable.  My advice is to do your best to weather the crisis.  When it is over, try to pay back the debts you incurred.  If you find that you are unable to make ends meet, credit counseling may be helpful in negotiating lower interest rates, longer terms, and lower monthly payment amounts.  If not, please do not hesitate to contact us about bankruptcy.

Stover McGlaughlin is a debt relief agency.  We are proud of our 40-year tradition of helping people file for bankruptcy relief under the Bankruptcy Code.

Serving Centre, Clearfield, Clinton, Huntingdon, and Mifflin Counties, including the communities of Bellefonte, Burnham, Clearfield, Curwensville, DuBois, Huntingdon, Lewistown, Lock Haven, Mount Union, Philipsburg, State College, and others.

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