The average inflation rate in the first five years of the 1990s was 6.8 per cent, 6.1 per cent in the second half of the 1990s and 5.2 per cent in the last five years. For the current year the rate of inflation is forecast at close to 4 per cent.
27 Nearly half of households studied by the Pew Charitable Trust had not recovered from financial shocks at least six months afterward.28 And the Federal Reserve SHED finds that 40 percent of adults report they would have difficulty covering an unexpected expense of $ This inability to plan for the future dramatically affects individuals’ ability to engage in the investments, such as cutting back on work hours to pursue education and training, and the risk-taking that is necessary to improve their financial lives.30 Access to credit can be an important part of weathering these shocks.