Inflation

In economics, inflation is an increase in the average price of goods and services in terms of money. This increase is measured using a price index, typically a consumer price index (CPI). When the general price level rises, each unit of currency buys fewer goods and services; consequently, inflation corresponds to a reduction in the purchasing power of money.

The opposite of inflation is deflation, a decrease in the general price level of goods and services.
The common measure of inflation is the inflation rate, the annualized percentage change in a general price index.

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