What is inflation, and how does it affect you?

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Some offers on this page are from advertisers who pay us, which may affect which products we write about, but not our recommendations. See our Advertiser Disclosure . What is inflation, and how does it affect you? Inflation affects the prices of everything from groceries to housing. K Kat Tretina Wed, August 12, 2026 at 8:18 AM PDT 5 min read Inflation is a term that refers to prolonged price increases. Put simply, inflation is the reason why your dollar doesn't go as far as it used to in the past. As prices rise, you get less for your money. For example, in March 2020, the average price of a dozen eggs was $1.53. Today, it's $2.14. You can calculate the inflation rate for a specific product or service with a simple formula: [(Current Price-Original Price) / Original Price] x 100 For example, to measure the inflation rate for a dozen eggs, you'd enter the following: [($2.14-$1.53) / $1.53] x 100 [$0.61 / $1.53] x 100 0.40 x 100 = 40 As you can see, the price of a dozen egg...

U.S. to use economic tactics on Iran 'that have never been seen'; Navy works to relieve troubled carrier USS Abraham Lincoln

The U.S. will be applying economic measures "that have never been seen on Iran," according to Treasury Secretary Scott Bessent. "It will be a combination of economic isolation like the world has never seen before, and the continued blockade in the Strait of Hormuz that will keep anything from going in or out of the Iranian ports," Bessent said in an interview with Newsmax, without elaborating further. His statements come as U.S. Defense Secretary Pete Hegseth reportedly said late Thursday stateside that the U.S. military can keep a naval blockade of Iran going "indefinitely." The Navy will rotate ships in and out "as we have, and we'll continue to," Hegseth told reporters. Media reports have said that the U.S. aircraft carrier USS George Washington was headed to replace the USS Abraham Lincoln, which has been deployed for over 250 days in the Middle East. Its deployment had been expected to end in May. The George Washington strike group departed Vietnam on Aug. 12 , the Navy said in a statement. Hegseth also told reporters that reports about poor conditions aboard the Lincoln, including food shortages, declining morale, and even attempts by sailors to jump overboard , were "completely misrepresented." After Hegseth's comments, Rep. Mike Levin (D-Calif.) said on X that he had sent a letter to Hegseth and Acting Secretary of the Navy Hung Cao to express serious concerns about conditions aboard the Lincoln. "The reports coming from military families and loved ones about the conditions aboard the USS Lincoln are simply unacceptable. Reports include concerns of moldy showers, broken toilets, lack of hot water, lack of access to fresh produce, and supply shortages," the letter said. Sailors and marines are also said to have an "overwhelming workload," which is contributing to "extreme fatigue and burnout," it said. In a post on X, U.S. Central Command said that reports alleging a brawl aboard the carrier were false, and that no service members have died. This came after Iranian media claimed on Tuesday that seven U.S. Navy personnel have been killed and several wounded "in a violent clash" on the Lincoln.

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