Widespread economic growth linked to higher inflation rates, study finds.
Inflation behaved strangely after the financial crisis, with rates not dropping when economies were struggling and not rising much during the recovery. The reason seems to be that when economic growth is spread out across many industries, inflation stays higher. But when growth is concentrated in just a few industries, inflation stays lower. This is because lower-income households spend more of their money on certain things, like basic needs, which can drive up prices. So, the type of industries that are growing can affect how high or low inflation is, which is important for how central banks set their policies.