How will inflation rates be affected by covid-19?

Covid19 is causing Central banks all over the way to do even more quantitive easing, which means buying back bonds and releasing more money into the system.

More money means higher inflation... your money is getting less and less value.

unfortunately, inflation is a lot more desired than deflation, so yeah at least its inflation. I will still prefer to keep cash at this time though, for opportunities.

(which is partially why central banks wants inflation, they don't want public to hoard their cash)

Hi there!

In the pre-COVID era back last year, inflation has been low and stable. Some economists have forecasted that COVID will bring about a resurgence in high inflation. The end of COVID-19 will bring about a surge in aggregate demand as people consume more, investments rise etc. However, aggregate supply (amount of goods and services that can be produced) is expected to remain constrained and limited as factories do not simply reopen overnight and supply chains may remain interrupted. This results in greater demand-pull inflation,

At the same time, essential workers may demand for higher pay, which has been seen in Amazon. This drives up cost of producing such goods as wages rises, which then results in higher cost-push inflation (higher prices).

Hope that helps!​​​