Why is inflation still high in many countries around the world?

Inflation is still high because prices are going up, and it’s like your piggy bank isn’t getting bigger fast enough.

Imagine you have a lemonade stand. You use 10 cents to make one cup of lemonade, and you sell it for 25 cents. That works well. But then the price of lemons goes up, now it costs you 20 cents to make each cup. If you still want to sell your lemonade for 25 cents, you’re making less money. So you decide to raise the price to 30 cents.

That’s like inflation, when things get more expensive, people and businesses have to charge more to keep up.

• People are spending a lot: Think of it like everyone wants a big ice cream cone at the same time. There aren’t enough cones to go around, so they cost more.
• Things are getting harder to make: Like if your lemonade stand is far away from the lemons, and you have to pay extra for delivery, that’s like higher costs for everything.

So even though things might get better eventually, right now, prices are still rising, just like your lemonade price.