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INFLATION

Inflation is a sustained increase in the general price level of goods and services in an economy over a period of time. In other words, it refers to a situation where the purchasing power of money decreases, meaning that the same amount of money can buy fewer goods or services than it could before. Inflation is often measured by the percentage increase in the Consumer Price Index (CPI) or the Producer Price Index (PPI) over a given period of time. There are various factors that can contribute to inflation, such as an increase in the money supply, a decrease in the supply of goods and services, an increase in demand for goods and services, or a decrease in the supply of labor. High inflation rates can have a negative impact on the economy, including reduced purchasing power, increased interest rates, and decreased economic growth.

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February 19, 2023

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