Guides ยท Finance
Inflation Basics
Why prices rise over time
Inflation reflects broad price increases from demand, supply shocks, or monetary factors, tracked by indexes like CPI; it erodes purchasing power and influences wages, rates, and investments.
- inflation
- cpi
- prices
- monetary policy
- rates
Understand Drivers
Demand-pull, cost-push, and monetary expansion can raise prices.
Measure
Indexes like CPI and PCE track baskets; core excludes food and energy.
Respond
Central banks adjust rates; individuals hedge with diversified assets.