We look at why the cost of living is rising and the actions of policy makers.
The cost of living continues to slide upward, and central banks have taken to action.
The US Federal Reserve, the Bank of England and the Swiss National Bank raised key interest rates, and the European Central Bank indicated it would move in a similar direction in July.
Inflation targeting is part of the central bank’s main objective and helps maintain price stability, but it has not worked, for several reasons. We have seen protests all over the world over the rising cost of food and services in the past week.
A little inflation would be a good thing if everyone’s wages rose at the same pace as prices, but that wasn’t the case. We ask what central banks and governments can do.