Inflation

/ɪnˈfleɪʃən/

Meaning & Definition

noun

The rate at which the general level of prices for goods and services is rising, and, subsequently, purchasing power is falling.

The recent inflation has resulted in higher prices for everyday goods.

A decrease in the purchasing power of money, often due to an increase in the supply of money.

Economists are worried that excessive money printing could lead to hyperinflation.

The action of inflating something, such as a tire or balloon.

The inflation of the balloons took longer than expected due to the small pump.

A situation where an increase in economic activity outstrips the growth of productive capacity.

The government is trying to manage inflation while simultaneously boosting economic growth.

From Latin 'inflatio', meaning 'a blowing up'.

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.

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.

The cost of living is going up.

With all this inflation, my paycheck just doesn't stretch like it used to.

Prices skyrocketing.

Gas prices? Total inflation city out there!