Price stability is really important for both shoppers and businesses. Here’s why:
Consumer Confidence: When prices are steady, people feel safer about how they spend their money. This way, they can create budgets without worrying that prices will suddenly go up.
Business Planning: Businesses need stable prices to predict their costs and decide how much to charge for their products. This helps them invest in growing and hiring more workers.
Interest Rates: When inflation is under control, central banks can set lower interest rates. This helps everyone because it makes borrowing money easier and encourages people to spend.
In short, when prices stay stable, it helps the economy stay healthy. This can lead to more growth and lower unemployment.
Price stability is really important for both shoppers and businesses. Here’s why:
Consumer Confidence: When prices are steady, people feel safer about how they spend their money. This way, they can create budgets without worrying that prices will suddenly go up.
Business Planning: Businesses need stable prices to predict their costs and decide how much to charge for their products. This helps them invest in growing and hiring more workers.
Interest Rates: When inflation is under control, central banks can set lower interest rates. This helps everyone because it makes borrowing money easier and encourages people to spend.
In short, when prices stay stable, it helps the economy stay healthy. This can lead to more growth and lower unemployment.