Inflation is the sustained increase in the prices of goods and services over time. It is a quantitative measure generally expressed as a percentage. Inflation indicates a decrease in the purchasing power of each unit of a nation’s currency.
Because there are many possible measures of the price level, there are many possible measures of price inflation. The most common is the Consumer Price Index (CPI).
The term inflation is also used to describe a rising price level within a set of assets, goods or services in the economy, e.g., food, fuel, real estate, services, labor and financial assets.
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