💸 Inflation 💸

Rate of increase in Prices over a given period of Time

Inflation is a gradual loss of purchasing power that is reflected in a broad rise in prices for goods and services over time. The inflation rate is calculated as the average price increase of a basket of selected goods and services over one year. High inflation means that prices are increasing quickly, while low inflation means that prices are growing more slowly. Inflation can be contrasted with deflation, which occurs when prices decline and purchasing power increases.

Inflation is when prices for goods and services rise and purchasing power falls. When inflation goes up, people and businesses have to spend more money to buy the same amount of goods and services. Put simply, everything becomes more expensive.

Rising expenses lead to inflation, meaning consumers get less for their money. There is always some inflation, but not at these dizzying degrees. Below are the top five reasons for inflation globally.

In an Inflationary Environment, unevenly rising prices inevitably reduce the purchasing power of some consumers, and this Erosion of Real Income is the single biggest cost of inflation. Inflation can also distort purchasing power over time for recipients and payers of fixed interest rates.

Money is any item or verifiable record that is generally accepted as payment for goods and services The primary functions which distinguish money are: medium of exchange, a unit of account, a store of value and sometimes, a standard of deferred payment.