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Money and Finances
Reply to "Inflation: explain it to me like I'm 5"
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[quote=Anonymous]It’s basically caused when demand outstrips supply. For example, early in the pandemic the demand for goods from China soared for things like furniture, TV’s and almost everything for the home. The cost of shipping a freight container of goods from China to the US increased from about $2000 to almost $20,000 because the demand soared but the supply of ships and containers did not increase. That higher cost got passed along to consumers. That’s just one simple example. [/quote]
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