Inflation is an essential indicator of the development of a country’s economy. It describes the increase in the general price of goods and services within a certain period. High inflation can harm the economy by affecting the population’s purchasing power and creating uncertainty for companies and investors.
Currently, inflation in many countries is higher than in recent years due to the COVID-19 pandemic, the Ukraine war, and related economic challenges. Some factors affecting inflation include the rising cost of commodities, supply chain disruptions, and the impact of central bank monetary policy actions.
The European Central Bank (ECB) has announced that it will maintain its monetary policy measures to stabilize the economy by preserving low-interest rates to give businesses and consumers access to cheap credit.
However, some voices fear that the central banks’ monetary policy measures and high government spending could lead to further inflation.
Overall, the current inflation trend is a complex and dynamic issue influenced by both the economic situation and the monetary policy decisions of central banks. It is uncertain how inflation will continue to develop in the coming months and how it will impact the economy and the crypto market.
Would you like to read more on this topic?
Here you can find an interesting report about it:
German: https://www.bundesbank.de/de/aufgaben/themen/inflation-lehren-aus-der-geschichte-614516
English: https://www.nerdwallet.com/article/investing/inflation