Inflation: What is it? Why do the prices of goods and services rise?

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According to ILO data released last March, oil and wheat prices have risen by 50 percent over a year ago.

Have you noticed that you are spending more money on buying your supplies lately? Or you may have noticed that you can no longer afford some of the things you used to be able to buy.

The reason for the rise in prices that we are currently observing is the high inflation rates. According to the International Labor Organization, the annual inflation rate worldwide more than doubled during the period from March 2021 to March 2022.

The inflation rate in March 2022 was 9.2 percent, compared to 3.7 percent in the same month last year.

A high inflation rate means an increase in the prices of basic goods and services such as food, energy, transport and clothing, which in turn leads to an increase in the cost of living.

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