Inflation, the rate of change of prices, is very unpopular because it erodes purchasing power. But very low inflation can be a sign of a weak economy and make monetary policy more difficult during downturns. Prior to the COVID pandemic, inflation in the United States consistently lagged below the 2 percent target of the Federal Reserve. This trend reversed dramatically as the economy recovered from the initial pandemic shock, with inflation reaching levels not seen in 40 years. Our posts explore the different causes of inflation and its economic costs; the difficulties associated with measuring inflation over time; the policy tools available to combat high inflation and their limitations; and insights into how inflation differs across sectors of the economy.
November 13, 2022
A discussion with Maurice Obstfeld on the strong dollar, global economic uncertainty, and potential policy responses.
August 3, 2022
Inflation is the highest it has been in the U.S. in decades. Different gauges provide insights about underlying trends and household experiences.
August 1, 2022
Food inflation has been one of the drivers of inflation. While it has begun to slow in developing countries, it remains historically high in the U.S. and eurozone.
July 17, 2022
Dan Sichel discusses the measurement of inflation, and how the single, headline inflation statistic may not fully reveal the range of effects across income groups or categories of goods and services.
June 19, 2022
Why is inflation so high? Who does it hurt most? And what are the prospects for it coming down? Karen Dynan of Harvard University joins EconoFact Chats to discuss these questions.
June 1, 2022
The dollar’s value against six major currencies reached a 20-year high in mid-May. How has the war in Ukraine contributed to the rise? What are the implications?
January 18, 2022
How does the expectation of high inflation become self-fulfilling, and what proxies do we have to reflect this inherently unobservable but important economic variable?
December 11, 2021
Inflation was 6.8% in November 2021. Whether it is likely to continue increasing depends on different factors that contribute to a generalized rise in prices.
November 12, 2021
Consumers are experiencing the highest annual grocery price increases in a decade and the highest annual restaurant price increases since the early 1980s.