Why has inflation been so high recently and what causes it?

Inflation has been high recently because things have gotten more expensive, and it feels like everything is going up at once.

Imagine you have a piggy bank full of coins. Every time you buy something, you take out some coins. Now imagine that all the stores suddenly said, "We’re raising our prices!" So instead of using one coin to buy a candy bar, you now need two. That’s inflation, it's like when prices go up, and your money doesn’t stretch as far.

• Supply chains got stuck: Think of it like a toy factory that couldn’t send its toys to the store because the trucks were delayed. So there weren’t enough toys, and people had to pay more for them.
• People started spending more: When the pandemic began, many people lost their jobs, but then things improved, and they wanted to buy new clothes, phones, or even a bike, so stores raised prices because they could.

It's like when you’re playing with your friends, and everyone wants the same toy. If there aren’t enough toys, some of you will have to pay more to get one. That’s what’s happening with inflation, it's like a big game where everything suddenly costs more.