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Inflation


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About Inflation


In economics, inflation is a rise in the general level of prices of goods and services in an economy over a period of time.When the general price level rises, each unit of the functional currency buys fewer goods and services; consequently, inflation is a decline in the real value of moneya loss of purchasing power in the internal medium of exchange which is also the monetary unit of account in an economy.A chief measure of general price-level inflation is the general inflation rate, which is the percentage change in a general price index (normally the Consumer Price Index) over time. Inflation can have adverse effects on an economy. For example, uncertainty about future inflation may discourage investment and saving. High inflation may lead to shortages of goods if consumers begin hoarding out of concern that prices will increase in the future. Economists generally agree that

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