The facts
Inflation measures the rate at which prices rise; even when inflation slows, prices that already rose generally do not fall back to old levels.
The Federal Reserve targets about 2% annual inflation and adjusts interest rates to try to keep prices stable without choking growth.
Inflation hits households unevenly — it weighs most on those who spend a larger share of income on essentials like food, rent, gas, and utilities.
Understand the issue
Civics quick read
Glossary
Inflation
Inflation means your money buys less than it used to because prices have gone up.
Glossary
Federal Reserve
The Fed is the nation's central bank, and one of its main jobs is to keep prices stable by raising or lowering
Civics
How does inflation actually affect your household?
A plain-English look at how rising prices are measured, why they matter, and why families feel them differently.
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Is inflation hurting your household?
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