Inflation costs economy over 1% of output per year, study finds.
The article shows that inflation can have a big impact on the economy, even if each individual effect is small. A 4% inflation rate, like the one in the U.S. since 1983, can cost the economy around 0.41% to over 1% of output per year, depending on how money is defined. This means that inflation can be more costly than we might think, compared to just looking at one part of the economy at a time.