Inflation
The rate at which the general level of prices for goods and services is rising, and, subsequently, purchasing power is falling. Investopedia Says:
As inflation rises, every dollar will buy a smaller percentage of a good. For example, if the inflation rate is 2%, then a $1 pack of gum will cost $1.02 in a year.
Most countries' central banks will try to sustain an inflation rate of 2-3%. Related Terms:
Consumer Price Index - CPI
Deflation
Disinflation
Federal Reserve System
Hyperinflation
Inflation-Indexed Security
Inflationary Psychology
Producer Price Index - PPI
Reflation
Retail Price Index - RPI
Stagflation
Stagnation
Treasury Inflation Protected Securities (TIPS) |