Inflation

Definition

Inflation: A general and sustained rise in the level of prices of goods and services – prices of vast

majority of goods and services on sale to consumers keeps rising over time.

Stagflation: Persistent high inflation combined with high unemployment and stagnant demand in

a country’s economy.

Hyperinflation: Prices rise at phenomenal rates in short periods of time, rendering money

worthless. Usually, the inflation rate is in double digits

Deflation: The prices of goods and services fall. This is usually negative inflation.

Disinflation: Fall in the rate of inflation.