With sharp increases to the price of goods and services, where’s all this extra money I’m spending going?

Question

Don’t try to tell me my wages are sharply increasing either, because they’re not! Nor are my friends, family, or neighbors.

In: 113

Answer 1

Inflation is kinda complicated and has a bunch of different causes, but in general you can think of it as just costing more money to produce the goods/services you’re buying. Usually due to a combination of increased cost of components and increased logistics(shipping). Either that or the currency you use to purchase them has gotten less valuable.