DEFINITION of 'Inflation'
Inflation is the rate at which the general level of prices for goods and services is rising and, consequently, the purchasing power of currency is falling. Central banks attempt to limit inflation, and avoid deflation, in order to keep the economy running smoothly.
Tagged in:
Absorb high rate of inflation
Consumer Price Index CPI
Deflationary environment
Equity and bonds investments
Goods and Services
Government borrowings
High rate of growth
Inflation
Investment assets
Monetary policy tools
Money supply of an economy
Purchasing power of a unit
Time value of money
