Economic Inflation

Definition

Economic inflation refers to the sustained increase in the general price level of goods and services over time, resulting in a decrease in purchasing power.

Related terms

Deflation: The opposite of inflation; it refers to a decrease in the general price level.

Consumer Price Index (CPI): A measure used by economists to track changes in the average prices paid by consumers for goods and services.

Hyperinflation: An extremely high and typically accelerating inflation.