What Is ยท Finance
Inflation
Rising price levels over time
Inflation tracks how average prices rise across an economy, eroding currency value and influencing wages, rates, and policy.
- consumer price index
- monetary policy
- prices
- wages
- interest rates
Measurement
CPI and other indices track weighted baskets of goods and services.
Causes
Demand surges, supply shocks, or monetary expansion can drive inflation.
Impacts
Affects savings, borrowing costs, and real income; central banks target ranges.