Inflation is an economic term that refers to an increase in the price of goods and services. There are two ways inflation can affect your paycheck: it can increase how much money you need to survive, or it can decrease how much money you get paid each month.
In either case, this means that people need to spend more money on everyday items like food and gas than they did before inflation rose. The United States experienced a period of mild inflation from mid-July 2020 until early February 2021; however, economists do not expect this trend to continue indefinitely.
The Bureau of Labor Statistics reports that the brief period of inflation experienced recently was mostly driven by commodity prices, which increased sharply in the first half of 2021. The increase in commodity prices is temporary and will not affect the next stimulus check. The consensus at present is that this increase in the cost of commodities will be temporary. As such, it can be expected that commodity prices will return to normal levels in the near future. This increase was caused by an increase in demand for certain materials used to make consumer goods such as furniture and appliances.
Stimulus Check Leaves Taxpayers Worried
In addition, the stimulus check was delivered through direct deposit to many Americans in March. Others received it as a paper check or a prepaid debit card or direct deposit during the month of April.
If you received your stimulus check as a paper check or prepaid debit card during the month of April, it is not taxable. If your stimulus check was directly deposited into an account for the first time in March and you did not open an account before then, then it would be taxable.
This is because the IRS considers that to have been earned income from January to March and will tax you on it accordingly if they find out about it after April 30th.
The stimulus checks are one of the best ways for Americans to save money during these tough economic times.
