inflation Reaches 8.6% the highest U.S Has Seen In 40yrs

Most countries round the world is currently experiencing inflation including U.S the inflation hit up-to 8.6% as from ending of May jumping into This month June on Friday 10th the data was released to be 8.6% which as not really happened for about 4 decades now.

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What Is Inflation
Inflation is basically the increase in The price of goods and services In an economy there by Decreasing the purchasing power of money. It can be the price increase in food, water, Gas, oil or services etc.
This is what U.S is currently facing at the moment With gas nearly 5.0$ a gallon. When inflation hit the economy it really affected the citizens mostly because they end up spending more money outside the initial budget.

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Major Factors That Drives Inflation

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- Increase In Production Costs
- High Rate In Demand

Basically these factors really affect the the economy there by resulting to inflation in the country.
Cost of producing goods will lead to increased in the price of purchasing that particular product. If the cost of producing a product increases by 1% it will literally affects the price of that product. At the end is the consumers (citizens) that end up paying for it which is why everyone is crying out now to eliminate inflation.

When the Demand of that product is high it can be that the cost of production was high which makes the producers not to produce in larger amounts and it lead to high demand of that particular product.

HOW To Slow Inflation

• Rise in interest rate
• Tight fiscal policy
• Supply-side policies

These methods can slowly stop the high rate of inflation in the economy if only it is applied perfectly by the government to take charge of it and maintain the policy stated to control it.
But most times it fails due to bad government and greed in the country and the painful part is that is the citizens that end up suffering from the inflation which is the worst part of it. Hopefully with time we can get to standard where all this problems can be fixed it can come from blockchain technology hopefully.

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