Prices at the gas station

“Inflation ended 2021 very hot.”

Senior economist Ben Ayers, Nationwide, on record setting inflation in 2021.

Published on

jan 12, 2022

  • New data shows the pace of inflation at 7% - typically economists like to see an annual rate of around 2%.
  • The pace of inflation is at the fastest pace in 40 years.
  • Inflation = "a general increase in prices in an economy and consequent fall in the purchasing value of money" (Oxford). Bottom line: The higher the inflation the less your money buys you.
  • Inflation has increased because of many variables - some specific to the pandemic, and others pre-dating it.
  • Why It Matters: The higher inflation has concerned policy makers - if inflation rises too fast or too high it can negatively impact the economy.

US inflation soared 7% in past year, the most since 1982

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