Does unemployment cause inflation?

Unemployment and inflation are two economic indicators that can have an impact on each other. In general, when unemployment is high, inflation tends to be low and vice versa. This relationship is known as the Phillips curve. However, the relationship between unemployment and inflation is not always straightforward and can be affected by other factors such as government policies and global economic conditions.

The effects of inflation are often not directly felt but are played out over a long time, especially long-term investments are vulnerable to inflation.


At Horizon65, we created a mobile app that enabled you to check the effect of inflation on your savings.

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