Inflation Hotspot!

25 Mar

Inflation Hotspot!

Republic Monetary Exchange is a full-service precious metals brokerage firm with friends and clients just about everywhere.  Because our offices are in Phoenix, Arizona, you won’t be surprised to learn that we have so many clients in Arizona.

Republic Monetary Exchange Office in Phoenix, AZ

Arizona is a beautiful state.  People like living here and are coming from far and wide.

But now our fair state has come in for some unwanted attention.  

Since Joe Biden became president, inflation has catapulted to levels that haven’t been seen in decades.  The fact is the median age of the American people is 37.9 years.  But inflation is at the highest level in more than 40 years.  That means that a majority of Americans have never experienced inflation as high as it is today.  

The official US inflation rate, the Consumer Price Index, is 7.9 percent.  That number from the Bureau of Labor Statistics means that consumer prices rose 7.9 percent for the 12-month period through the end of February. 

But unfortunately, consumer prices are rising even faster in the Phoenix area.  According to the government numbers, the CPI for Phoenix-Mesa-Scottsdale rocketed up 10.9 percent over the last 12 months.

That is the highest inflation rate in the United States!  The Wall Street Journal calls metro-Phoenix “America’s #1 Inflation Hotspot.” 

None of this should be much of a surprise to our Phoenix-area clients.  Higher prices are evident everywhere.

One of the reasons the Phoenix cost of living is so high is because of real estate.  The Census Bureau reports that during the first full year of the Coronavirus pandemic, from mid-2020 to mid-2021, Phoenix grew by 78,000 people.

Other notable growth cities are Dallas and Houston, growing by 97,000 and 69,000 people respectively.  Both those cities grew by a combination of migration and births outpacing deaths.  But the growth of Phoenix, according to the Associated Press, is driven primarily by people coming from elsewhere in the US.

What cities are the big population losers?  Exactly the places you would guess.

New York lost 328,000 residents.  Metropolitan Los Angeles lost 176,000, San Francisco 116,000 residents, and greater Chicago lost 91,000 people. 

We don’t mind telling you that the official government inflation statistics grossly understate real increases in the cost of living.  The way it under-estimates housing costs is practically legendary.

But no matter how the numbers are totaled, and no matter where you live, inflation is a severe problem today.  Every dollar you have is losing purchasing power fast.  Few people have any idea how to navigate and prosper in an inflationary episode.  

We do.  We are gold and silver specialists.  For thousands of years, people have turned to precious metals to protect themselves from the shady practices of the monetary authorities.

Today is no different.  Why not make an appointment with us today and learn how to protect yourself from inflation, already high and headed higher?