Inflation
What is Inflation?
The rate at which the general level of prices rises, eroding purchasing power.
Understanding Inflation
Inflation means a unit of currency buys less over time. It is commonly measured with the Consumer Price Index (CPI).
Central banks usually target low, stable inflation, around 2% a year in many economies, and raise interest rates to slow it.
Formula
FAQ
Is some inflation good?
Many economists see low, stable inflation as healthy. It gives central banks room to cut rates and avoids the risks of falling prices.