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EXPLAINER: Why are fears of high inflation getting worse?

Washington pandemic economy
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WASHINGTON – Gas prices are rising. Auto prices are soaring. Consumer goods companies are charging more for household basics like toilet paper, peanut butter and soft drinks.

All of which is resurrecting fears of an economic threat that has all but disappeared over the past generation: Runaway inflation.

It occurs when prices for most goods and services not only rise but accelerate, making the cost of living steadily more expensive and shrinking the purchasing power of Americans' earnings and savings.

In the past, rising inflation has usually led to higher pay as workers have demanded and received raises to keep pace. In fact, inflation can't really accelerate for long without sizable wage gains.

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COVID-19
United States
United States
Cases: 46 252 513
Deaths: 750 423
Recovered: 0
India
India
Cases: 34 321 025
Deaths: 459 652
Recovered: 0
Brazil
Brazil
Cases: 21 835 785
Deaths: 608 235
Recovered: 0
United Kingdom
United Kingdom
Cases: 9 215 683
Deaths: 141 607
Recovered: 0
Russia
Russia
Cases: 8 494 589
Deaths: 237 619
Recovered: 0
Detail statistic
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