Inflationary pressures occur when the overall prices of goods and services in an economy rise consistently over time. This can have various impacts on individuals, businesses, and the broader economy. As prices increase, consumers may be forced to reduce their spending and alter their consumption patterns, leading to a decline in overall economic activity. Businesses also face challenges, as rising costs can erode profit margins and make it more difficult to plan for the future. Central banks often implement monetary policies to try to manage inflation, but finding the right balance is crucial to avoiding both high inflation and a stagnant economy.