Question

Inflation has risen to over 10% and is at the highest rate it has been for a long time.

How could this affect society (people), and the economy?

Answer 1

I will sum it down. Inflation cause items to be more money while the people are still being payed the same. This causes people to run out of money and not have a thriving household. The economy is like a cause and effect. The more on thing costs the more the next thing costs. This makes everything over priced and overwhelming for the people and the economy.

Answer 2

Inflation is crucial to the economy because inflation can reduce the value of investment returns.

Inflation raises prices, lowering your purchasing power. Inflation also lowers the values of pensions, savings, and treasury notes.

Many people especially those with less salary will be greatly affected.