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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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