Inflation: Everybody’s Enemy

What is inflation? Inflation is the rise in prices compared with what they were earlier, such as a year ago. Aren't prices always rising? Nearly always. The price of a good depends on several things: the prices of materials, rent and labor. These prices can rise for many reasons, and when they rise, the prices we pay go up. Why does that become a problem? It's a problem when prices rise too fast when the cost of your groceries is more than it was last year - but your pay didn't go up. Inflation becomes your enemy because retail prices don't always fall when prices of production fall. Today's high prices become the basis for future inflation. How does inflation happen? Many factors can lead to higher inflation. War is one example. The war in Ukraine is fought by Russia and Ukraine, but the war affects most of the world. Primary reasons are the costs of food and energy. Russia supplies most of Europe's energy. Both Russia and Ukraine provide a lot of the grains ...