Now, as COVID eases, do we need to worry about inflation?

Now, as COVID eases, do we need to worry about inflation?

Many nations’ economies are bouncing back from COVID-19, putting upward pressure on prices. The jury’s out on whether inflation is back to haunt us. Signs advertising jobs in Harmony, Pennsylvania, 21 May 2020. Increased economic growth in some economies...

Inflation can be a challenging topic to understand. What exactly is it, why is it important and is it really all that bad? Correspondent Sarah Edmonds brings her economics expertise to this decoder that unpacks the link between the prices of goods and services and the value of your money, and shows how consumer expectations as economies rebound could lead to an inflationary spiral.

Exercise: Ask students to compare the average price of goods in their city, such as food, gas or a new car, with average local wages since the pandemic began in March 2020. How have they changed (or not)?

Tag: central banks