Meaning & Definition of word "Inflation"
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Inflation
/ɪnˈfleɪʃən/
noun:
- 1. The rate at which the general level of prices for goods and services is rising, and, subsequently, purchasing power is falling.
- Example: The recent inflation has resulted in higher prices for everyday goods.
- 2. A decrease in the purchasing power of money, often due to an increase in the supply of money.
- Example: Economists are worried that excessive money printing could lead to hyperinflation.
- 3. The action of inflating something, such as a tire or balloon.
- Example: The inflation of the balloons took longer than expected due to the small pump.
- 4. A situation where an increase in economic activity outstrips the growth of productive capacity.
- Example: The government is trying to manage inflation while simultaneously boosting economic growth.
Etymology
From Latin 'inflatio', meaning 'a blowing up'.
Common Phrases and Expressions
inflation rate:
The percentage increase in prices over a specified period.
hyperinflation:
An extremely high and typically accelerating inflation rate.
deflationary spiral:
A situation where falling prices lead to lower production and employment.
Related Words
deflation:
A decrease in the general price level of goods and services.
stagflation:
A situation of slow economic growth and relatively high unemployment, accompanied by inflation.
monetary policy:
The process by which the monetary authority manages money supply to achieve specific goals.
Slang Meanings of inflation
Meaning: The cost of living is going up.
Example Sentence: With all this inflation, my paycheck just doesn't stretch like it used to.
Meaning: Prices skyrocketing.
Example Sentence: Gas prices? Total inflation city out there!