Inflation is the term for when the prices of goods and services rise, according to SmartAsset.<\/p>\n
That happens when the economy is growing strongly. As demand for goods and services increases, so do prices, SmartAsset reported. <\/p>\n
GET FOX BUSINESS ON THE GO BY CLICKING HERE<\/strong><\/p>\n However, as inflation increases, money’s purchasing power decreases, according to the financial website. <\/p>\n KPMG chief economist Constance Hunter, Heritage Capital President Paul Schatz and David Nicholas of Nicholas Wealth Management on the latest Consumer Price Index numbers, inflation, the Federal Reserve and today\u2019s markets.\u00a0<\/p>\n "During a period of inflation, a dollar is worth less from one year to the next because it will purchase less," SmartAsset reported. "Wages also tend to rise during inflation, however, so workers earn more. Borrowing tends to increase, since debts can be paid back in the future with dollars that are worth less."<\/p>\n CLICK HERE TO READ MORE ON FOX BUSINESS<\/strong><\/p>\n According to The Washington Post, inflation in the U.S. typically stays below 2% annually. However, inflation is rising at a much higher rate now, in part because the economy is reopening as the country recovers from the coronavirus pandemic, The Post reported.<\/p>\n Price increases are also being caused by supply chain bottlenecks that happened during the pandemic, which is making it challenging for businesses to get the materials they need. Some businesses are also struggling to fill jobs because supplemental unemployment benefits have encouraged workers to stay home. <\/p>\n![](\"https:\/\/cf-images.us-east-1.prod.boltdns.net\/v1\/static\/854081161001\/d2f3eba1-c324-495e-9198-90a608bfa7de\/7126e24a-2ade-4c04-8e06-e184ab2a4108\/1280x720\/match\/image.jpg\")
<\/p>\nHow will food inflation impact your wallet? <\/h2>\n