Recently, the talks of inflation in the economy news have been the main topic. The cost of goods and services are going up. From rising prices of eggs to cars, everyday consumers are experiencing the effects of Inflation. If you’ve been reading my articles, I’ve also been a proponent of points, miles, and cash back programs. I’ve been able to redeem for cash, gift cards, airline flights, hotels, and more. What I realized is that these, too, are susceptible to economic waves such as inflation called Pointsflation.

Redeeming points is straightforward with these apps. You accumulate points. When you want to redeem those for cash, gift card, or other, you select the dollar value and it will tell you how many points it will cost you. Let’s say a $5 gift card to a retailer costs you 5,000 points. 5,000 points will be deducted from your account and you will receive a $5 gift card.

Other programs such as airline miles or hotel points are similar. You accumulate miles and points in your account. If you have a reservation you want to make, search with the option to redeem. If the carrier has availability, it will list them out with the amount of miles or points needed.

Just like the price of goods going up due to inflation, so does the price of points. In my earlier example with the $5 gift card costing 5,000 points, it has gone up to 6,500 points for the same $5 gift card. It cost more in points to get the same thing a number of months ago. Very similar with airlines and hotels, the cost of redeeming miles and hotel points will cost more than previously.

Points are not immune to the effects of inflation. You may be accumulating points or have accumulated a large number of points but be cautious that those points may not be as valuable in the future. I accumulated a large number of points in one of the programs I’m enrolled in thinking that I will cash out big one time. I didn’t realize the potential for Pointsflation and now my points are worth less. Just like how you keep an eye on the prices of eggs, keep an eye on the value of your points. If you are interested in following my journey and their journey, follow them on Instagram and email subscribe to get alerts of latest posts or follow me on Facebook, Instagram, and Pinterest.