Is inflation here to stay?

[WatChe]

There is no permanent solution for this. It is safe to assume that inflation is here to stay and will keep on rising as the population increases. The population growth is more than 1 billion every decade and this adversely increases the demand for each commodity. The demand is rising but is the supply rising as well? I think it is quite the opposite. Farmers are selling their farm lands to industrialists, oil rigs are drying up, live stock is on a falling rate and so on. So as demand depicts how can we expect the inflation to stay in it's place.

Inflation will hit even harder after a decade from now and we should be prepared for it because if we are prepared, we will find ways to tackle the rising prices instead of just sitting and thinking the government might come up with something to handle inflation.

We have to admit that inflation will keep increasing itself with time, that's what we have seen so far and same is expected in coming future. What we can do as individual is to either sit and keep cursing it or do something to mitigate it's effect. The best thing we as individual can do to beat inflation is to find ways on how to increase our net earnings. Everyone has smartphone with internet and that provides us ample opportunities to work extra to earn extra money. Inflation is here to stay, now we have to make the decision of living with it or mitigating it's effect.

[davis196]

With persistent price hikes and global supply chain issues, are we entering a new era of permanently higher inflation rates?

Are there really any ways to combat inflation permanently ?

Yes, there are ways to stop inflation permanently, but this would most likely cause economic stagnation and probably a recession.
The politicians don't want inflation levels close the zero. Having a decent level of inflation leads to higher "inflation tax" and higher tax revenue and inflation also devalues the national debt(if we are talking about the countries, that have control over the major global fiat currencies).
Some experts say that the growing adoption of AI would have a deflationary effect over the global economy(because of the productivity boost), that's why most countries wouldn't impose restrictive monetary policies. The AI adoption might cause mass unemployment, which would be a way bigger problem than high inflation.

[simonova]

The AI adoption might cause mass unemployment, which would be a way bigger problem than high inflation.

Unemployment will result in less spending power thus less demand which means less inflation.

[FanEagle]

The issue with inflation is that it's a very ruthless circle and causes it to continue to go up. Because person A increases the price due to inflation, and person B buys from him and has to sell for more now, and person C buys from A and increases too, and then person A buys from C so they have to now increase and it becomes a bad circle and unless one of them stops, and takes a loss for a while, it won't stop, and even in that case it may not stop because people love making more money.

That's the main root cause of it, people check their product, and they want to make more, so they increase the price as long as people are willing to buy. If we all suddenly stopped buying anything but water and rice for a month, watch how prices will not only stay, but will even go down.

[Marvell1]

The AI adoption might cause mass unemployment, which would be a way bigger problem than high inflation.

Unemployment will result in less spending power thus less demand which means less inflation.

As unemployment increases, income falls and thus demand falls. Falling consumer demand will also make it difficult for prices to rise sharply, thereby reducing inflation. Theoretically, you may be right.

However, high unemployment will have a more negative impact on the economy. Such as rising poverty, social unrest and growing inequality. That will cause more social evils.


Not to mention, prolonged unemployment will affect the competitiveness and survival of businesses. Meanwhile, enterprises are the main driving force for investment and economic growth. From there, the economy will gradually decline and stagnate, making recovery more difficult.

davis196 is right, unemployment is a much more serious problem than inflation.

[Unknown Op]

The AI adoption might cause mass unemployment, which would be a way bigger problem than high inflation.

Unemployment will result in less spending power thus less demand which means less inflation.

As unemployment increases, income falls and thus demand falls. Falling consumer demand will also make it difficult for prices to rise sharply, thereby reducing inflation. Theoretically, you may be right.

However, high unemployment will have a more negative impact on the economy. Such as rising poverty, social unrest and growing inequality. That will cause more social evils.


Not to mention, prolonged unemployment will affect the competitiveness and survival of businesses. Meanwhile, enterprises are the main driving force for investment and economic growth. From there, the economy will gradually decline and stagnate, making recovery more difficult.

davis196 is right, unemployment is a much more serious problem than inflation.

People are thinking there are living in the Era in which there is huge inflation but all people thought in all Eras they are living in a condition when prices of things are high . People should learn more about inflation and their salary increase And their wealth increase because their worth is going up and they are becoming more rich of their town or place in which they are living. If people are saving money from the salary then there are more chances they will be successful in a long term but person is taking debt from different people and his spending are more than his income then he will be not rich in long term because he wasted his wealth for which he did hard work. People are inflation is a disaster but actually it is not .

[free-bit.co.in]

Don't forget with population that keep increasing.

Inflation is good, but not for high inflation and yeah I think we will suffer high inflation rate for many years since people are struggling with the current economy. Many people who were fired from their company after working for a decade or more, don't have a specific skill to work in other company.

Even some small shops can't survive because the big companies able to sell their product directly to costumers without through small shops/resellers.

Along with a growing but unevenly distributed population, supply and demand are increasingly out of balance and governments are largely unable to balance them due to political disagreements. So we're not just stuck with inflation for years, but possibly forever, and things will only get worse as geopolitical instability increases. Increased geopolitical instability will lead to further imbalances between supply and demand, which will further worsen inflation.

I am not optimistic about the current world, so we should protect ourselves from inflation by allocating to assets like gold, bitcoin. Of course, finding ways to increase income is a must, don't expect inflation to ease.

[doffiaicial]

     Inflation is here to stay and may not automatically disappear because the underlying drivers( unpleasant factors)  haven’t changed. When an economy has low domestic production, a volatile currency such as the Nigerian Naira(NGN) , The Ghanian Cedi(GHS), Argentine peso(ARS) , high logistics/energy costs, and a money supply that expands faster than output; inflation will unavoidably become structural rather than temporary. Even if policies become  tight it does not improve on the factors but only slows it. I.e the price will keep rising but slowly. it doesn’t reverse price levels. 

     So yes, inflation persists because the fundamentals (productivity, FX stability, fiscal discipline, supply-chain efficiency) are still weak. Until those improve, inflation remains a long-term feature, not a short-term shock.

[abhiseshakana]

The AI adoption might cause mass unemployment, which would be a way bigger problem than high inflation.

Unemployment will result in less spending power thus less demand which means less inflation.

As unemployment increases, income falls and thus demand falls. Falling consumer demand will also make it difficult for prices to rise sharply, thereby reducing inflation. Theoretically, you may be right.

However, high unemployment will have a more negative impact on the economy. Such as rising poverty, social unrest and growing inequality. That will cause more social evils.


Not to mention, prolonged unemployment will affect the competitiveness and survival of businesses. Meanwhile, enterprises are the main driving force for investment and economic growth. From there, the economy will gradually decline and stagnate, making recovery more difficult.

davis196 is right, unemployment is a much more serious problem than inflation.

People are thinking there are living in the Era in which there is huge inflation but all people thought in all Eras they are living in a condition when prices of things are high . People should learn more about inflation and their salary increase And their wealth increase because their worth is going up and they are becoming more rich of their town or place in which they are living. If people are saving money from the salary then there are more chances they will be successful in a long term but person is taking debt from different people and his spending are more than his income then he will be not rich in long term because he wasted his wealth for which he did hard work. People are inflation is a disaster but actually it is not .

Inflation isn't just a matter of perception or personal discipline. I see today's inflation as related to:

• Wage increases that don't keep pace with rising needs. Many countries are experiencing wage stagnation, where incomes rise slowly, but the prices of basic necessities rise much faster. Even though wages are rising, purchasing power actually declines, and we don't become richer.
• It's not just because people are living extravagantly; there are structural factors beyond the control of ordinary people that disrupt supply, leading to price increases that can't be addressed simply by saving or managing spending.
• The advertising industry creates overconsumption by creating new desires, accelerating the consumption cycle, making people buy wants rather than needs, and encouraging companies to produce non-essential goods. When demand for consumer goods increases, companies increase production and prices, triggering demand-pull inflation.
• Inflation isn't dangerous if income, productivity, and prices are moving in balance. But when they're out of balance, inflation becomes a structural problem, not an individual's fault.

[simonova]

• Wage increases that don't keep pace with rising needs. Many countries are experiencing wage stagnation, where incomes rise slowly, but the prices of basic necessities rise much faster. Even though wages are rising, purchasing power actually declines, and we don't become richer.

This is really a very serious issue. About 99% people in my country are under this category. They will end up in very bad situation in future.

[YUriy1991]

There is no permanent solution for this. It is safe to assume that inflation is here to stay and will keep on rising as the population increases. The population growth is more than 1 billion every decade and this adversely increases the demand for each commodity. The demand is rising but is the supply rising as well? I think it is quite the opposite. Farmers are selling their farm lands to industrialists, oil rigs are drying up, live stock is on a falling rate and so on. So as demand depicts how can we expect the inflation to stay in it's place.

Inflation will hit even harder after a decade from now and we should be prepared for it because if we are prepared, we will find ways to tackle the rising prices instead of just sitting and thinking the government might come up with something to handle inflation.

In my opinion, inflation occurs because the economy is collapsing, purchasing power is declining, and prices of manufactured goods continue to rise. People can't buy them because they have no money due to job losses due to layoffs. I completely agree with what you said. Besides hoping the government will do its job well to grow the country's economy, we must also find minimal solutions for ourselves to successfully overcome this problem if it ever occurs.

If the worst-case scenario ever occurs, we are prepared. We must work together to overcome the uncontrolled population surge. I believe that with our savings, we can help others by creating new jobs in the food sector or other fields that can boost the economy and support their families. Even if it's a small amount, if done together, it will certainly accommodate many people. When this happens, we can overcome inflation, even in a small capacity. This is the power of togetherness that can save many people and help the country's economy as a whole.

[Jatiluhung]

The issue with inflation is that it's a very ruthless circle and causes it to continue to go up. Because person A increases the price due to inflation, and person B buys from him and has to sell for more now, and person C buys from A and increases too, and then person A buys from C so they have to now increase and it becomes a bad circle and unless one of them stops, and takes a loss for a while, it won't stop, and even in that case it may not stop because people love making more money.

That's the main root cause of it, people check their product, and they want to make more, so they increase the price as long as people are willing to buy. If we all suddenly stopped buying anything but water and rice for a month, watch how prices will not only stay, but will even go down.

Well, this is one of the causes. Another cause is a crisis or scarcity of something, which leads to an increase in the value of that scarce item. For example, a food crisis can lead to another level of inflation. This is because it will affect the availability of stocks in the market, which are very limited, causing food prices to continue to soar. And the value of money will continue to decline due to the continuing rise in food prices. So, governments often deal with this by importing food stocks from other countries. This can usually suppress prices a little so that they do not rise higher, which usually triggers uncontrolled prices in the market. Food crises usually occur due to crop failures or the agricultural sector shrinking and not attracting much interest from people.

However, what can trigger inflation at a faster and higher rate is an energy crisis. This is because it can increase prices in almost all sectors that require energy. A few years ago, we witnessed this when a country stopped sending oil supplies to another country due to war or similar conflicts.

[terrific]

Unemployment will result in less spending power thus less demand which means less inflation.

The former is true but the latter is not.
Even with less demand, inflation will continue to increase and there is no such as less inflation even if it's less demand.
What we have is only delayed increase of inflation and even it will be slowed down, there's likely around 1% of inflation for each year.
If that's the less for you then you're right but those are the conditions and percentages if the country is doing well.
Otherwise, we know how it can be that much.

[khiholangkang]

• Wage increases that don't keep pace with rising needs. Many countries are experiencing wage stagnation, where incomes rise slowly, but the prices of basic necessities rise much faster. Even though wages are rising, purchasing power actually declines, and we don't become richer.

This is really a very serious issue. About 99% people in my country are under this category. They will end up in very bad situation in future.

This is what I am facing right now, in my country, the average level of need is very high but the wages we get are not proportional to the needs we have to pay to meet the standard of living according to the regulations made by the government itself.
Nowadays in my country if we have a wife we have to work both jobs to be able to fulfil our needs and have money to save because the salary that I only get is only meant for one person, it's not like in the past where one person working can fulfil the needs of the family safely and we can still save well.

The wage gap is increasing year by year due to high inflation of around 10% or more while the annual salary increase is far below 4% or lower.

[sunsilk]

The wage gap is increasing year by year due to high inflation of around 10% or more while the annual salary increase is far below 4% or lower.

Most workers can't cover that up when they have lesser salary increase compared to how much is the inflation rate.

This is why many are complaining that amount they're earning isn't enough just to bear with the cost of living.

Even if they have the best budgeting technique, it's not just enough at all. The annual salary increase won't be enough to cater all of the increases cost by the inflation and so, one has to work 2 full time jobs and one part time.

[Dick Long]

It's very important to note that inflation is bound to happen when there is high increase in the prices of goods and services which is often as a result of decrease in the flow of money. This comes and go when properly handled by control budget and policies that results to this through necessary bodies in charge of the economy

[khiholangkang]

The wage gap is increasing year by year due to high inflation of around 10% or more while the annual salary increase is far below 4% or lower.

Most workers can't cover that up when they have lesser salary increase compared to how much is the inflation rate.

This is why many are complaining that amount they're earning isn't enough just to bear with the cost of living.

Even if they have the best budgeting technique, it's not just enough at all. The annual salary increase won't be enough to cater all of the increases cost by the inflation and so, one has to work 2 full time jobs and one part time.

Yes, it is true, until I thought of leaving my country and looking for a better job to appreciate the hard work I did, basically my skills are not inferior and also have a lot of enthusiasm in many things, in addition to the labor resources in my country are so many that companies are easy to control workers to get the little wages they give, many companies pay below the standards set by the government this condition is even worse, working as a manager and above is the same as the wages of a cleaner or farmer in a country that appreciates labor more abroad.

Inflation is increasingly pressured by the worse conditions, on the other hand also the economic turnover that does not give much profit that sometimes there are honest companies that can only give a little wage to their workers, inflation presses them also from raw materials that are increasingly expensive to produce, inflation hits many parties to live better.

[Ayers]

Unemployment will result in less spending power thus less demand which means less inflation.

The former is true but the latter is not.
Even with less demand, inflation will continue to increase and there is no such as less inflation even if it's less demand.
What we have is only delayed increase of inflation and even it will be slowed down, there's likely around 1% of inflation for each year.
If that's the less for you then you're right but those are the conditions and percentages if the country is doing well.
Otherwise, we know how it can be that much.

No, in theory, he's right. If demand decreases, inflation will also decrease, and if the decrease in demand persists, it will even lead to deflation in the economy. That would be even worse than an inflationary economy.

Inflation is caused by an imbalance between supply and demand, especially when demand increases too sharply, leading to higher production costs. Furthermore, inflation is caused by geopolitical conflicts and supply chain disruptions, not just by printing money. Therefore, he was absolutely right when he said that if demand decreases, inflation will decrease.

[Youngrebel]

With persistent price hikes and global supply chain issues, are we entering a new era of permanently higher inflation rates?

Are there really any ways to combat inflation permanently ?

If we are truthful to ourselves in this part of the world the inflation rate dropped a little bit and  kn this season of festivity for that matter. It is generally known and accepted that the inflation level is never thesame the hike and continues increase on a daily basis has been constant but it seems as though theres a little drop currently.
However, the inflation level cannot be as usual as before again.  Time has evolved as well the values of money not thesame gain. With more time we hope to see a further drop soonest.

[G_Besar]

It's very important to note that inflation is bound to happen when there is high increase in the prices of goods and services which is often as a result of decrease in the flow of money. This comes and go when properly handled by control budget and policies that results to this through necessary bodies in charge of the economy

Inflation occurs when money circulation increases among everyone and can also be influenced by a scarcity of goods in a region or country, causing existing stocks of goods to become more expensive due to the lack of new goods being supplied to the region or country. Therefore, inflation has several effects, as it is not only caused by high money circulation, which can cause a decrease in the value of money, but also through other factors such as goods and prices. Therefore, government action is always needed because without government attention, inflation will continue without proper management. Generally speaking, all parties are responsible for this so they can work together to help the government eradicate it more effectively.