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What Is Inflation and What Causes It? What to Know
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U.S. inflation is at its highest rate in nearly four decades, reaching 7% in December from a year ago. Consumers are seeing prices rise sharply for a variety of goods and services because strong demand is colliding with persistent supply shortages.
Inflation is one of the most vexing problems facing economists and government policy makers. The causes are myriad, and the tools usually deployed to tame price pressures can, in some scenarios, push the economy into a recession.
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