Inflation in the Economy


Logan Pugh

As the COVID – 19 pandemic continues, the inflation rate has gone through the roof. In December, the consumer price index increased by 7% from December of 2020, which is the largest growth in one year in over forty years. Here are some of the reasons why this is happening.

One of the major reasons why inflation has shot up is “Supply and Demand,” which is the lack of goods forcing the prices to increase. Since these products have such a limited supply, consumers are paying a ridiculous amount of money for a product that they could have gotten for half the price during normal times. Cargo ships continue to be parked at docks, waiting to be unloaded so goods can be distributed. Factories are not receiving those goods to ship basic necessities, such as cars, clothing, groceries, and much more. Also, the lack of workers have put a toll on these corporations, due to COVID. Companies are losing tons of money and many customers, due to these long-going problems. 

These ongoing issues can trouble students as well. Purchasing a car is one thing, but paying for gasoline is another. During the early stages of the pandemic, gas prices were under $2 a gallon, since everyone was in lockdown and not driving. Once everyone started going back to work and school, gas prices rose to an outrageous rate, averaging around $3.50 a gallon. 

Overall, the inflation shows no signs of slowing down, and hopefully the prices will decrease, and everything will come down to an acceptable rate.