Inflation is rising consistently; it is up 11% since last April.

There are lots of things affecting inflation. Some of these effects include the exchange rate, the monetary policy, rate of economic growth, wage growth, oil prices, inflation expectations, and productivity growth. The reason for inflation being so high right now is mostly because of high energy costs and the covid recovery process. The government has spent a large amount of money on trying to get back from covid and getting businesses back on track. This has made the price of gas and groceries sky rocket. Not only that but the stock market is tanking and losing many a lot of money. 

Is this necessarily beneficial for the economy? The rising costs are really hurting low income families as their main necessity is gas and groceries. There are lots of issues with these necessities increasing as wages aren’t going up so the families that aren’t making a lot of money are having a tough time.

This is also caused by the government spending too much money and trying to gain that money back by raising prices and taxing people more. This is beneficial for the government as the government is trying to come back from covid. However, this is hurting the economy as everyone else is still trying to get back from covid. Most people lost their jobs during this time and don’t have much money. As people are still getting back on their feet it doesn’t help as the prices just keep going up.

Unfortunately, officials do not see the inflation going down. They think it could still consistently go up as the government hasn’t made the amount of money equal to the money they’ve spent. This could really hurt the economy as the value of a dollar is going to keep decreasing since the price of everything else is consistently going up.