Inflation

Overview

One of the biggest challenges that can afflict an economy, inflation is a monetary phenomenon wherein prices broadly rise and consumer purchasing power declines. From a practical perspective, it means your dollar doesn’t stretch as far as it did the day before.

In the US, the inflation rate has generally been around 2% to 3% per year since 1960, with a handful of notable spikes, and prices have risen nearly continuously since then. A dollar one century ago was worth $18 in 2024 terms.

Economists largely agree some small, stable amount of inflation is desirable, and most central banks set inflation targets that they attempt to control via the interest rates and money supply. Still, global economies remain subject to large-scale events that can trigger inflation—wars, natural disasters, pandemics, supply chain disruptions, and more.

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Inflation

Overview

1440 Findings

Explore Business & Finance

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