Written by the Fiveable Content Team • Last updated September 2025
Verified for the 2026 exam
Verified for the 2026 exam•Written by the Fiveable Content Team • Last updated September 2025
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.