About inflation in simple manner
Inflation refers to the general increase in prices of goods and services in an economy over a specific period of time. When inflation occurs, the purchasing power of money decreases, meaning that each unit of currency can buy fewer goods or services. In other words, it takes more money to buy the same items. Image by Tumisu from Pixabay Inflation is typically measured using various economic indicators, such as the Consumer Price Index (CPI) or the Producer Price Index (PPI), which track the changes in prices of a basket of goods and services over time. These indices provide a way to quantify the rate of inflation and monitor its impact on the economy. There are different causes of inflation, including: Demand-pull inflation: This occurs when the demand for goods and services exceeds the supply. As demand increases, businesses may raise prices to maximize their profits. Cost-push inflation: This type of inflation arises when there is an increase in the production...