why is inflation so high as of 2024 
in 2022 inflation rates around the world rose to their highest levels since the early 1980s while there is no single reason for this rapid rise in global prices a series of events worked together to boost inflation to such high levels the covid 19 pandemic led to lockdowns and other restrictions that greatly disrupted global supply chains from factory closures to bottlenecks at maritime ports governments also issued stimulus checks and increased unemployment benefits to counter the financial impact on individuals and small businesses when vaccines became widespread and the economy bounced back demand fueled in part by stimulus money and low interest rates quickly outpaced supply which still struggled to get back to pre covid levels russia s unprovoked invasion of ukraine in early 2022 led to economic sanctions and trade restrictions on russia limiting the world s supply of oil and gas since russia is a large producer of fossil fuels food prices also rose as ukraine s large grain harvests could not be exported as fuel and food prices rose it led to similar increases down the value chains the fed raised interest rates to combat the high inflation which significantly came down in 2023 though it remains above pre pandemic levels the bottom lineinflation is a rise in prices which results in the decline of purchasing power over time inflation is natural and the u s government targets an annual inflation rate of 2 however inflation can be dangerous when it increases too much too fast inflation makes items more expensive especially if wages do not rise by the same levels of inflation additionally inflation erodes the value of some assets especially cash governments and central banks seek to control inflation through monetary policy 