Economics & Markets

Inflation

General increase in prices over time, reducing the purchasing power of your money.

Also known as: price inflation, inflation rate

What You Need to Know

Inflation is the silent eroder of buying power. Prices rise over time, so the $100 in your wallet today buys less than it did 5 years ago.

Pet Ownership & Inflation:

  • Veterinary costs rise 3.5-5% annually (faster than general inflation)
  • A $3,000/year pet today costs $4,300/year in 10 years at 3.5% inflation
  • Over a 12-year pet lifetime, inflation adds 20-30% to total costs

Why Pets Feel More Expensive Over Time:

  • Senior care (age 7+) drives up vet visits and medications
  • Quality food prices increase with demand
  • Prescription pet medications follow broader drug price trends

Planning for Inflation:

  • Build it into your pet cost calculator (use 3-3.5% annual rate)
  • Budget conservatively to avoid mid-life shocks
  • Consider pet insurance earlier rather than later (rates lock in)

Sources & References

This information is sourced from authoritative government and academic institutions:

Inflation: Your Money Loses Buying Power Every Year