US prices are rising faster than at any time in the last 40 years, straining workers' paychecks and eroding savings. This educational video explains why prices are surging, what it means for US households, and some of the ways policymakers can fight inflation in 2022 and beyond.
For more analysis of US inflation and how the Federal Reserve should respond, read the forthcoming PIIE Briefing, Debating inflation and what the Fed should do, and the latest PIIE research.
Nia Kitchin and Oliver Ward
Anjali Bhatt, Melina Kolb, Oliver Ward, and Steven R. Weisman
Special thanks to Karen Dynan, Joseph E. Gagnon, and David Wilcox for their contributions.