Why are global inflation rates still higher than historical averages?

Global inflation rates are still higher than usual because prices for things we buy every day have gone up a lot, like when your favorite candy becomes more expensive.

Imagine you and your friends all have piggy banks where you save coins. One day, the store where you buy candy says, “We’re raising prices!” So instead of 10 coins for a bag of candy, it now costs 15 coins. That’s inflation, everything becomes more expensive.

Think of money as the number of people at a birthday party. If there are more people (more money being used), but the cake is still the same size (the amount of stuff produced), then each person gets less cake. That means prices go up, just like when you have to pay more for that bag of candy.

Also, sometimes things get disrupted, like a storm that stops the delivery truck from coming. This makes it harder to get goods, so stores raise prices even more. It's like if your friend couldn't bring the cake because of a big rainstorm, now everyone has to share less cake and pay more for it.

So, all these things together make inflation stay high, just like when you have to use more coins to buy that same bag of candy.