Economics

Inflation: It is the rate of increase in prices over the given period of time. It is typically a broad measure, like the overall increase in prices or the increase in the cost of living in a country. It, in an economy, mainly refers to the general progressive increase in prices of goods and services. So, when there is a rise in the general price level, each unit of the currency buys fewer goods and services. Consequently, it also corresponds to a reduction in the purchasing power of money.