Inflation is an important economic concept that affects the value of money over time. This article will provide an overview of inflation, including its causes, effects, and how to protect yourself from its effects. We will discuss the different types of inflation, including cost-push,
In economics, inflation is an increase in the average price of goods and services in terms of money. This increase is measured using a price index, typically a consumer price index (CPI). When the general price level rises, each unit of currency buys fewer goods and services; consequently, inflation corresponds to a reduction in the purchasing power of money. The opposite of inflation is deflation, a decrease in the general price level of goods and services. The common measure of inflation is the inflation rate, the annualized percentage change in a general price index.