Part 8/12:
Stealth inflation—rising food, fuel, and consumer goods prices—continues to undermine household budgets. Fast food prices have doubled or tripled since 2014, and low-income consumers are feeling the pinch as disposable incomes shrink.
Governments appear to favor stealthy inflation, which reduces real debt burdens. As inflation rises, the debt-to-GDP ratio temporarily falls, making borrowing easier. However, this trick accelerates the devaluation of currency and erodes savings, especially given the reckless growth of money supply.