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    Definition of 'Inflation'

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    MP Lee
    Inflation is defined as the rising general level of prices for goods and services which causes purchasing power to fall over time. Central banks aim to prevent both high inflation and deflation by keeping price growth at a minimum level. Investopedia further explains that inflation reduces the purchasing power of currency, so a $1 item will cost $1.02 the following year if inflation is 2%, and most countries target an inflation rate of 2-3%.

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    Definition of 'Inflation'

    Uploaded by

    MP Lee
    13 views1 page
    Inflation is defined as the rising general level of prices for goods and services which causes purchasing power to fall over time. Central banks aim to prevent both high inflation and deflation by keeping price growth at a minimum level. Investopedia further explains that inflation reduces the purchasing power of currency, so a $1 item will cost $1.02 the following year if inflation is 2%, and most countries target an inflation rate of 2-3%.

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    Inflation is defined as the rising general level of prices for goods and services which causes purchasing power to fall over time. Central banks aim to prevent both high inflation and deflation by keeping price growth at a minimum level. Investopedia further explains that inflation reduces the purchasing power of currency, so a $1 item will cost $1.02 the following year if inflation is 2%, and most countries target an inflation rate of 2-3%.

    Copyright:

    Attribution Non-Commercial (BY-NC)
    Download as EHTML, PDF, TXT or read online from Scribd
    Flag for inappropriate content
    Download as ehtml, pdf, or txt
    13 views1 page

    Definition of 'Inflation'

    Uploaded by

    MP Lee
    Inflation is defined as the rising general level of prices for goods and services which causes purchasing power to fall over time. Central banks aim to prevent both high inflation and deflation by keeping price growth at a minimum level. Investopedia further explains that inflation reduces the purchasing power of currency, so a $1 item will cost $1.02 the following year if inflation is 2%, and most countries target an inflation rate of 2-3%.

    Copyright:

    Attribution Non-Commercial (BY-NC)
    Download as EHTML, PDF, TXT or read online from Scribd
    Flag for inappropriate content
    Download as ehtml, pdf, or txt
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    Definition of 'Inflation'

    The rate at which the general level of prices for goods and services is rising, and, subsequently, purchasing power is falling. Central banks attempt to stop severe inflation, along with severe deflation, in an attempt to keep the excessive growth of prices to a minimum.

    Investopedia explains 'Inflation'


    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 23%.

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