How is inflation spreading through the United States economy?

Inflation is like a wave that starts small but grows bigger as it moves through the economy.

Imagine you have a piggy bank full of candies. At first, you only need a few coins to buy one candy. But then, one day, your favorite store says, “We’re raising the price!” Now you need more coins for the same candy. That’s inflation, when things get more expensive over time.

Inflation starts with something people use every day, like gas or bread. If the cost of gas goes up, it affects trucks that deliver food to stores. Soon, the price of bread also goes up. Now, instead of just one thing getting more expensive, many things do, like rent, toys, and even ice cream.

When prices go up everywhere, it’s harder for people to buy everything they need. It's like having a piggy bank with fewer coins than before. Even if you save money, you might not be able to buy as much as you used to. That's why inflation feels like a big wave, once it starts, it can spread and change how we live.