Inflation
Definition Inflation is the rate at which the general level of prices for goods and services rises, eroding purchasing power over time. It’s a key economic indicator, reflecting how much more expensive a set of goods and services has become over a specific period, usually a year. Implications Purchasing Power: As inflation rises, the same amount of money buys fewer goods and services, impacting consumers’ buying power. Interest Rates: Central banks may adjust interest rates to manage inflation, influencing savings, borrowing and investment behaviors.