Inflation is the rate at which the general level of prices for goods and services rises, leading to a decrease in purchasing power. Essentially, as inflation rises, each unit of currency buys fewer goods and services, which means money loses value over time. There are several key concepts related to inflation: 1. **Measurement:** Inflation is commonly measured using price indices, such as the Consumer Price Index (CPI) or the Producer Price Index (PPI).
New to topics? Read the docs here!