Like so many economic problems, inflation comes down to an imbalance between supply and demand.
A woman shops for groceries at a store on July 29, 2022 in Arlington, Virginia.Inflation continues to be the top economic concern for most Americans.. While still high, the inflation rate eased from the near-historic pace in June.
Here's an explainer about why inflation is so high and what happened last time prices rose at such a fast pace. But the surge in demand for goods and labor far outpaced supply, as COVID-related bottlenecks slowed delivery times and infection fears kept workers on the sidelines.
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