{"id":11165,"date":"2023-03-31T11:24:36","date_gmt":"2023-03-31T05:54:36","guid":{"rendered":"https:\/\/polscienceweb.com\/?post_type=portfolio&#038;p=11165"},"modified":"2024-03-23T23:10:56","modified_gmt":"2024-03-23T17:40:56","slug":"the-problem-of-sticky-inflation","status":"publish","type":"portfolio","link":"https:\/\/polscienceweb.com\/index.php\/portfolio\/the-problem-of-sticky-inflation\/","title":{"rendered":"The problem of sticky inflation?"},"content":{"rendered":"\n<h4 class=\"wp-block-heading has-text-align-center\"><strong>What\u2019s happening?<\/strong><\/h4>\n\n\n<div class=\"has-text-align-center wp-block-post-date\"><time datetime=\"2023-03-31T11:24:36+05:30\">31st March 2023<\/time><\/div>\n\n\n<div style=\"height:16px\" aria-hidden=\"true\" class=\"wp-block-spacer\"><\/div>\n\n\n\n\n\n<p class=\"wp-block-verse\" style=\"font-size: 18.5px; text-align: justify;\"\n>Sticky inflation refers to&nbsp;a phenomenon where&nbsp;prices do not adjust quickly to changes in supply and demand, leading to&nbsp;persistent inflation. It erodes the purchasing power of consumers, particularly those with low incomes.<\/p>\n\n\n\n<div style=\"height:13px\" aria-hidden=\"true\" class=\"wp-block-spacer\"><\/div>\n\n\n\n<p class=\"wp-block-verse\" style=\"font-size: 18.5px; text-align: justify;\"\n>What are the causes right now?<\/p>\n\n\n\n<div style=\"height:15px\" aria-hidden=\"true\" class=\"wp-block-spacer\"><\/div>\n\n\n\n<ul class=\"wp-block-verse\" style=\"font-size: 18.5px; text-align: justify;\">\n<li>Higher food and fuel prices;<\/li>\n\n\n\n<li>firms passed on higher input costs to consumers;&nbsp;<\/li>\n\n\n\n<li>twin shocks of the COVID pandemic and the Russia-Ukraine war;<\/li>\n\n\n\n<li>Inflation expectations: If consumers and businesses think inflation will be high in the future, they may be more willing to pay higher prices now. As a result, firms may be less likely to lower prices even when demand is low.<\/li>\n<\/ul>\n\n\n\n<div style=\"height:14px\" aria-hidden=\"true\" class=\"wp-block-spacer\"><\/div>\n\n\n\n<p class=\"wp-block-verse\" style=\"font-size: 18.5px; text-align: justify;\"\n>As a result, the central bank raises interest rates to keep inflation low. Higher interest rates make borrowing more expensive for businesses and impact investment and job creation. The US, India, and countries in the eurozone are currently facing sticky inflation.<\/p>\n\n\n\n\n\n<div style=\"height:17px\" aria-hidden=\"true\" class=\"wp-block-spacer\"><\/div>\n\n\n\n<p class=\"has-text-align-center\">Source: <a href=\"https:\/\/indianexpress.com\/article\/explained\/explained-economics\/india-sticky-inflation-causes-consequences-8454047\/\" target=\"_blank\" rel=\"noreferrer noopener\">IE<\/a><\/p>\n","protected":false},"excerpt":{"rendered":"<p>What\u2019s happening? Sticky inflation refers to&nbsp;a phenomenon where&nbsp;prices do not adjust quickly to changes in&hellip;<\/p>\n","protected":false},"author":1,"featured_media":11164,"comment_status":"closed","ping_status":"closed","template":"","portfolio-category":[452,455,426],"class_list":["post-11165","portfolio","type-portfolio","status-publish","has-post-thumbnail","hentry","portfolio-category-452","portfolio-category-march-2023","portfolio-category-newsfeed"],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v27.4 - https:\/\/yoast.com\/product\/yoast-seo-wordpress\/ -->\n<title>The problem of sticky inflation? - Politics Science News<\/title>\n<meta name=\"description\" content=\"Sticky inflation refers to\u00a0a phenomenon where\u00a0prices do not adjust quickly to changes in supply and demand, leading to\u00a0persistent inflation.\" \/>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/polscienceweb.com\/index.php\/portfolio\/the-problem-of-sticky-inflation\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"The problem of sticky inflation? 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