Sticky Inflation

Sticky inflation means inflation that does not fall quickly or easily. In simple terms, prices keep rising or stay high even when people expect inflation to cool. Sticky inflation is important because it can make central banks keep interest rates high for longer. If inflation remains sticky, borrowing may stay expensive and markets may become more cautious. For example, if rent, services, and wages keep rising even after energy prices fall, inflation may be sticky. Sticky inflation is not the same as high inflation for one month. It means inflation pressure is persistent and difficult to bring down.