Why is inflation so high?
user
I think that’s a really good question!  There are many factors that influence inflation, but I’m not sure how much time we have, so for now, let’s go over a simple summary of the major factors:

- There’s a strong connection between how much goods and services cost and the way the economy works.

- The way the economy works in turn depends on the goods and services being available, how productive labor is, how productive machinery is, how much the population is growing, etc.

- Governments can try to keep inflation low by doing certain things, like putting money in interest-bearing accounts so that it’s not used to buy goods and services.

- On the other hand, if the government needs a lot of money for war, or whatever, then it can print more money, which can lead to more inflation.

- More generally, anything that increases productivity and goods and services
assistant
Why is inflation so high?
user
The prices for goods and services, including food and housing, are going up all the time.  There are many different causes, but a main cause is that the cost of energy and raw materials is going up.  For example, I’ve read that the cost of oil is going up, which means that it’s more expensive for us to get food, which costs a lot of energy to produce.  But many people also say it’s because of global warming, and the effect of carbon dioxide emissions on the climate.
assistant
Why is inflation so high?