Why is inflation persistently high in many global economies?

Imagine you have a piggy bank full of candy, and every day you take out more candy than you put in, that’s like inflation. It means things get more expensive over time.

Think of your favorite toy store. If everyone wants to buy toys at once, but there aren’t enough toys to go around, the shop has to raise prices. That's what is happening in many countries, too many people want to buy things, but not enough things are being made.

Also, sometimes when we spend too much money on something big, like a new house or a car, it makes everything else cost more, too. It’s like if you borrowed all your allowance to buy a super cool video game, now you have less money left for snacks and ice cream!

At the same time, the cost of making things has gone up, like how much it costs to build that toy or grow that candy. So even though we want more toys and candy, they're not getting cheaper; they’re getting more expensive.

It’s like when you try to buy ice cream on a hot day, everyone wants it, but the shop only has a few scoops left, so it costs more. That's why inflation is high in many places around the world.