Policies to reduce inflation, often called contractionary policies, are economic strategies used to slow down rising prices. These include:

• Monetary policy: Central banks raise interest rates to make borrowing money more expensive and saving more attractive. They may also reduce the money supply and increase reserve requirements for banks to limit how much money is available to circulate.
• Fiscal policy: Governments can reduce their own spending or increase taxes. These actions lower the total demand for goods and services in the economy.
• Direct controls: In rare and extreme situations, governments may use wage and price controls to legally limit how much businesses can charge or how much workers are paid.