Inflation is the rate at which the general level of prices for goods and services increases, reducing purchasing power, which HR considers for wage adjustments and benefits planning.
- What is inflation?
Answer: It is the rate of increase in prices, reducing purchasing power. - How does it affect employees?
Answer: It erodes real wages unless adjusted. - How does HR respond?
Answer: HR may recommend cost-of-living raises or benefit enhancements. - What is the current U.S. inflation rate?
Answer: As of July 11, 2025, it is approximately 2.5% (subject to updates). - What are the implications for benefits?
Answer: Benefits like FSAs may need limit adjustments.
