As inflation continues to run rampant throughout the United States economy, we have all experienced the effects of supply chain impediments, labor shortages, and increased costs in our daily personal lives. From higher prices at the pump to the cost of milk and eggs, everything is more expensive.
As of March 2023, the United States annual inflation rate is 6%, after having reached a high of 9.1% in June 2022.
Inflation is generally considered to be an increase in the prices of goods and services in the economy over a given period of time. When prices rise, in general terms, purchases fall. Inflation happens when prices increase due to higher production costs or, alternatively, when the demand for a product exceeds it supply.
Property damage claims are subject to the effects of inflation. The cost of building materials for restoration, appliances, and even personal property are all on the rise. A claim that might have been valued at $1,200 just two years ago, can easily have a value two or three times that today.