Inflationary Psychology The relationship between inflation and individuals' behavior. Investopedia Says: For example, in times of higher-than-average inflation, consumers have a higher likelihood of borrowing to buy things because they are assuming goods will cost more tomorrow than they do today. This increased buying only exacerbates inflation. Related Terms: Consumer Price Index - CPI Deflation Disinflation Hyperinflation Inflation Inflation-Indexed Security Price Creep Producer Price Index - PPI Reflation Retail Price Index - RPI Stagflation Stagnation Treasury Inflation Protected Securities (TIPS) |