This year, 2021, brought us the worst inflation in nearly 40 years, a 7% annual rate. Is the inflation tax temporary (“transitory”)? Firms will not be able to take back those wage increases that surged during the inflation period or the higher prices for supplies and inventories. At the beginning of the year, a net 17% reported raising average selling prices (net of the percent cutting prices). This is helping many workers keep up with inflation, but the gains and losses are not equally shared across the population.

Source: Forbes December 22, 2021 23:11 UTC