Inflation was a problem after World War II because the government had increased spending during the war to support military efforts. This led to an increase in the money supply, and as goods and services became scarcer due to the war effort, the increased demand pushed up prices. After the war, the government continued to spend money on things like rebuilding Europe and investing in infrastructure, and with the end of wartime rationing, there was a surge in consumer demand for goods. This led to continued high demand and rising prices. Additionally, many workers who had been earning high wages during the war were now competing for jobs in a peacetime economy, which put upward pressure on wages and prices. Collectively, these factors contributed to a period of high inflation that persisted for several years after the end of World War II.
