Importance of inflation

I don’t think inflation is always bad it really depends on how high it is and how well a country manages it. A bit of inflation, especially around 2%, is actually seen as healthy because it usually means demand is rising and the economy’s growing. It can also encourage spending and investment, since people aren’t just sitting on their money.

But yeah, when inflation gets too high or unpredictable, it definitely becomes a problem. It messes with planning, hurts savings, and hits lower-income people the hardest since essentials get more expensive. That’s when it starts slowing down growth instead of helping it.

Also, how bad inflation is kind of depends on how strong a country’s institutions are. If people trust the central bank and policies are stable, then moderate inflation isn’t such a big deal. But in countries with weaker systems, even a small jump in prices can cause panic.

So overall, I’d say inflation isn’t always a threat it can actually support development when it’s under control.