US Inflation Rate
What is inflation?
Inflation is when prices rise over time. This happens because people demand more goods and services than there are available to meet those demands. As a result, the price of goods and services rises.
How does it work? Why should we care about it? These questions have been asked by many people over the years, and they're still being asked today.
Inflation is one of the biggest challenges facing our economy today. If you've ever wondered how much something costs now compared to what it cost just a few years ago, then you need to learn more about inflation.
The U.S. Bureau of Labor Statistics (BLS) defines inflation as "the increase in prices over time." When inflation occurs, prices rise across the board, whether it's at the grocery store, gas station, or restaurant. For example, if you bought a gallon of milk for $2.50 last year, it would be $3.00 this year. That means that every dollar you spent on milk has increased by 50 cents.
How Does Inflation Work?
Inflation is caused by two main factors: 1) Demand for goods and services 2) Supply of goods and services. If demand for goods and services grows faster than supply, then prices will go up.
The most common example of inflation is price increases at the grocery store. When people buy more groceries, there is less available for sale. As a result, the price of those items goes up. Another example of inflation is when the government prints too much money. This causes the value of currency to decrease. Because the value of currency decreases, the cost of buying things becomes higher.