ECONOMICS
INFLATION
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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Inflation might slow down next year.
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Inflation will increase dramatically next year.
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Supply chains will be disrupted for several years.
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Experts have little ability to predict inflation patterns.
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Detailed explanation-1: -US Expected Change in Inflation Rates: Next 5 Years is at 2.90%, compared to 2.90% last month and 3.00% last year. This is lower than the long term average of 3.20%.
Detailed explanation-2: -The 5 causes of inflation are increase in wages, increase in the price of raw materials, increase in taxes, decline in productivity, increase in money supply. You can read about Inflation in Economy-Types of Inflation, Inflation Remedies, Effect of Inflation in the given link.
Detailed explanation-3: -Following the 8.8% global inflation rate in 2022, the IMF forecasts a 6.6% rate for 2023 and 4.3% rate for 2024 based on their most recent January 2023 update.
Detailed explanation-4: -WASHINGTON, Jan. 10, 2023-Global growth is slowing sharply in the face of elevated inflation, higher interest rates, reduced investment, and disruptions caused by Russia’s invasion of Ukraine, according to the World Bank’s latest Global Economic Prospects report.