The most common measure to control inflation is tightening monetary policy.
Central banks, such as the Federal Reserve in the United States, raise interest rates to reduce the money supply and decrease demand for goods and services.
When interest rates rise, it becomes more expensive for individuals and businesses to borrow money, and they are less likely to spend it on non-essential goods and services.
This reduces the demand for products, and eventually, the prices start to decrease, controlling inflation.
Fiscal policy adjustments are another tool used to control inflation.
The use of taxes and public expenditure by the government to affect the economy is referred to as fiscal policy.
Governments can reduce inflation by decreasing public spending and increasing taxes.
By reducing public spending, the government decreases demand for goods and services, which lowers prices and controls inflation.