Inflation, the rate of change of prices, is very unpopular because it erodes purchasing power. 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.
April 5, 2023
The Fed has raised interest rates briskly to reverse a historic rise in inflation. But it faces the risk that its efforts to lower inflation will cause a recession.
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.
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.
October 7, 2021
COVID supply disruptions, evident in product shortages at the retail level, were an important driver of inflation a year after the start of the crisis.
September 21, 2021
A look at how inflation is calculated, the factors that have contributed to the recent rise in inflation, and the dangers posed by high and ongoing inflation.