January 12, 2022
Inflation ended 2021 very hot.Senior economist Ben Ayers, Nationwide, on record setting inflation in 2021.
- New data shows the pace of inflation at 7% – typically economists like to see an annual rate of around 2%.
- The pace of inflation is at the fastest pace in 40 years.
- Inflation = “a general increase in prices in an economy and consequent fall in the purchasing value of money” (Oxford). Bottom line: The higher the inflation the less your money buys you.
- Inflation has increased because of many variables – some specific to the pandemic, and others pre-dating it.
- Why It Matters: The higher inflation has concerned policy makers – if inflation rises too fast or too high it can negatively impact the economy.
by Jenna Lee,