How Does Inflation Actually Work? May 2026

Understanding the Mechanics of Inflation Inflation is the general and sustained increase in the overall price level of goods and services across an economy over time. Rather than the price hike of a single item, it reflects a broad decrease in the of a currency. Core Mechanisms: Why Prices Rise

Economists generally categorize the "how" of inflation into three primary drivers: Understanding Inflation - PIMCO How Does Inflation Actually Work?