What does it mean

Inflation   Inflation refers to the general increase in prices of goods and services over time, leading to a decrease in the purchasing power of money. In simpler terms, it means that as time goes on, the same amount of money can buy fewer goods or services. When inflation occurs, the prices of various items in the economy tend to rise. For example, the cost of food, housing, transportation, and other everyday items may increase. This means that consumers need more money to purchase the same quantity of goods they could have bought for less money in the past. Inflation is typically measured by tracking changes in the average price level of a basket of goods and services over a specific period. Economists and policymakers often use various indices, such as the Consumer Price Index (CPI), to monitor inflation and make informed decisions. Inflation can have both positive and negative effects on the economy. Mild and controlled inflation is generally considered healthy for an economy ...