What Is Inflation and Why Does Everything Still Cost So Much?

Inflation means prices are going up. It happens when the costs of goods and services—things like groceries, electricity, and bus fares—rise across the board. A little increase in inflation is normal. But when it happens too fast, it hits working people the hardest.

If your paycheck stays the same but your bills keep growing, that’s inflation—and it’s not your fault.

So what causes inflation?

Messed up supply chains. That includes the people who make the things we buy, the parts or ingredients needed, the trucks or ships that move them, and the stores that sell them. When that system breaks down, like it did during COVID, it costs more to get something from where it’s made to where you buy it. Prices go up because companies pass the higher cost of doing business onto us.

Corporate greed. Sometimes, big businesses will take advantage of inflation and raise their prices just because they can. They may not actually need to raise prices, but they want to make more money any chance they get. That’s corporate greed, and it’s one of the biggest drivers of inflation right now.

Tariffs. A tariff is a tax on things that come into this country from other countries. When that tax goes up, it costs more for stores to get those products onto their shelves, and they usually raise prices to make up for it. Because so much of what we buy comes from other countries, when tariffs are in place, that means we all end up paying more for just about everything.

The truth is, inflation doesn’t hit everyone the same. For billionaires and big corporations? They’re still making record profits. For the rest of us? It’s a struggle just to keep up.

You didn’t cause inflation, but you’re the one feeling it. And while politicians argue and point fingers, it’s our communities who get squeezed the most.