Inflation in the United States refers to the phenomenon that prices generally rise and the purchasing power of money declines. This means that goods or services bought in the same currency will be more expensive than before. Inflation rate is usually measured by consumer price index (CPI), which is regarded as an indicator to measure the price level.

Inflation is a common phenomenon in the economy, but the long-term high inflation rate has a negative impact on economic stability and consumer choice. In the United States, the Federal Reserve, a powerful central bank, is responsible for monitoring the money supply to control the inflation rate. The Fed influences the money supply through interest rate adjustment and other monetary policy tools.

The impact of high inflation rate on society is various, and the unpredictability of prices may lead to the decline of investment and consumption willingness of enterprises and individuals. Price changes become unpredictable, and people may feel uneasy, resulting in less investment and consumption. In addition, people with fixed income will be affected by inflation, because their income will remain the same, but their real purchasing power will decline because of rising prices.