eli5: Since inflation pushes the price of items up every year, does that mean we’re eventually going to get to a point where it’s normal to pay like $20 for a carton of milk?

Question

eli5: Since inflation pushes the price of items up every year, does that mean we’re eventually going to get to a point where it’s normal to pay like $20 for a carton of milk?

In: Economics

Answer 1

central banks aim to manage inflation to keep it stable. while prices may increase, it doesn’t guarantee that everyday items like milk will become disproportionately expensive. its about maintaining a balance to ensure a healthy economy