The government curtails inflation through various measures, including:

• Monetary policy: Increasing interest rates to discourage borrowing and reduce consumer spending, therefore lowering demand and inflation.
• Fiscal policy: Reducing budget deficits through austerity measures, decreasing government spending and increasing taxes, to lower aggregate demand and control inflation.
• Exchange rate policy: Depreciating the value of the currency to lower import prices and raise exports, reducing demand, and prices, particularly for imported goods.
• Supply-side policies: Boosting the supply of goods and services to bring down prices, like incentivizing businesses to invest in production.

Wholesalers play a crucial role in controlling inflation as they buy goods from producers in bulk and sell them to retailers.:

• When inflation rises, wholesalers absorb part of the extra costs instead of passing it all on to retailers, allowing for price stabilization.
• Wholesalers can also use their negotiating power to decrease the prices they pay to producers, lowering the overall cost of goods and services.
• Additionally, wholesalers can contribute to inflation by engaging in price gouging or hoarding goods. As such, governments need to ensure that wholesalers operate ethically in the marketplace.

Together, these measures can help curtail inflation and keep prices under control.