Inflation Rate

Definition

The inflation rate refers to the percentage increase in the general price level of goods and services over a specific period of time. It measures how fast prices are rising and indicates the rate at which the purchasing power of money is decreasing.

Related terms

Deflation: Deflation is the opposite of inflation and refers to a decrease in the general price level of goods and services over time.

Consumer Price Index (CPI): CPI is a measure that tracks changes in the average price level of a basket of consumer goods and services over time.

Hyperinflation: Hyperinflation occurs when there is an extremely high and typically accelerating inflation rate, leading to a rapid decrease in the value of currency.