Financial Education

Inflation

General rise in prices; erodes purchasing power

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Macro

Inflation

General rise in prices; erodes purchasing power

Definition

Inflation is the rate at which the general price level of goods and services rises, reducing purchasing power. Measured by CPI, PPI, and GDP deflator. Central banks target 2-3% annual inflation for economic stability.

Related Topics

#price level #purchasing power #monetary policy #economic indicator

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Category: Macro

Macro economics studies large-scale economic factors including interest rates, GDP, inflation, and government policies.

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