Wages rise when the labor market is tight. Furthermore, because salaries account for a large portion of production expenses, increased wages are likely to raise inflation. Low unemployment should imply increased inflation as a result of these simple correlations. High unemployment, on the other hand, should lower wages and slow inflation. Why, therefore, has inflation

Higher oil prices cause inflation both directly and indirectly by raising the cost of inputs. During the 1970s, there was a significant link between inflation and oil prices. As the US economy has become less reliant on oil, its ability to fuel inflation has decreased. Because oil is such a vital input, its price has

Inflation has risen in America as a result of rising demand and a supply shortage created by Covid-19’s global influence on trade. The main drivers to the increase were price increases for food, power, and shelter. Following a 0.5 percent gain in December, the food index increased by 0.9 percent in January. In addition, the

Inflation is the gradual loss of a currency’s buying value over time. The increase in the average price level of a basket of selected goods and services in an economy over time can be used to calculate a quantitative estimate of the rate at which buying power declines. A rise in the general level of

Since March 2020, the state of the economy has been inextricably linked to the pandemic’s progress. And, despite the fact that many people in this country conduct their lives without regard for case statistics, this is nonetheless the case. The pandemic is specifically contributing to the soaring inflation rates that are generating so much grief