Inflation is a very important indicator that measures the performance of a country's economy. It is a broad term used to describe the general movement of prices. The money or currency used by the people to buy products, services, or assets will shrink in value due to inflation. Inflation is the rise of the overall prices of goods and services over a certain period in time. The most common cause of inflation is due to the increase in money supply by the government and monetary authorities.In this article, we will explain what inflation is and how to measure it. Then we will take a look at how inflation affects the economy and how it can be used as a policy tool. After that, we will give some examples of countries where inflation is high and we will see how it influences the day-to-day life of people living in these countries.Inflation is one of the most important concepts of a modern economy. It is an inevitable process as common as sunset. If you're working or studying Economics, you definitely have to know how to explain inflation in your own words. After reading this article, you'll be able to define inflation correctly and have the right explanation for it.Inflation is defined as the rise of the overall prices of goods and services over a certain period in time. It is an increase in the general price level that persists over a period of time. Inflation can be either good or bad for an economy. A good inflation rate that is kept at a consistent level can be helpful for economic growth, but high inflation rates can lead to economic stagnation or even a decline in the economy. On the other hand, deflation is a decline in the general price level over a period of time.
