by Gabriela Berrospi
Forbes
Many of us in the Latino community in the United States have firsthand knowledge of the devastating effects of hyperinflation, having seen it wreak havoc in countries like Venezuela, Argentina, Cuba and even my homeland, Peru—with Venezuela’s situation among the most severe. In the wake of a global pandemic, the U.S. economy faces a critical challenge that could reshape its future: a significant and long-term rise in inflation.
Since 2021, the cumulative inflation rate has soared to over 18%, with the current annual rate at about 3.5% at the time of writing. This steady price climb is reminiscent of the early stages of Venezuela’s economic meltdown, which began subtly and later spiraled into a catastrophic crisis. To analyze this situation, it is important to note the difference between deflation and disinflation. Deflation means prices are generally going down, while disinflation means inflation is going up—but at a slower rate. We are currently in a disinflation phase, which means inflation is not improving.