Why can’t costs simply keep the identical?

Over the previous few years, a lot of the world has skilled some fairly intense inflation, with costs rising as a lot as 10 p.c in a single 12 months. In 2024, despite the fact that inflation charges have fallen to extra manageable ranges, costs are nonetheless approach up and are most unlikely to come back down. Which, understandably, continues to be a supply of main stress for individuals everywhere in the world. So why can’t costs simply keep the identical?

As a shopper, regular costs and 0 inflation looks as if the perfect: You need your buying energy to remain the identical and in your greenback right now to purchase you precisely the identical quantity as your greenback tomorrow. However even in instances of worldwide financial well being and stability, governments and their central banks actively keep away from letting inflation get too low. That’s as a result of 0 p.c inflation may really find yourself doing extra hurt than good.

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