Effects of Inflation and Interest Rates on Your Finances

Anyone who has been to a grocery store, to a gas pump or to buy regular household items in recent months will likely have noticed that prices have gone up somewhat markedly. This is largely due to the pandemic which has brought about disruption in the supply chain (basically the many steps in the process in the production and distribution of goods), increase in oil prices, labour shortages and increased buying after people have been stuck at home for many months. Consequently, inflation, which has been very low for many years, experienced a significant uptick in 2021 . This has governments around the world trying to figure out a solution to a difficult problem.