Higher inflation refers to an increase in the general price level of goods and services within an economy over a period of time. In other words, it means that the cost of living is rising at a faster rate than usual. This can be due to various factors such as increased demand for goods and services, higher wages for workers, or changes in government policies. Higher inflation can have both positive and negative effects on an economy. On one hand, it can lead to economic growth by encouraging spending and investment. However, on the other hand, it can also reduce purchasing power, increase debt burden, and create uncertainty among consumers and businesses.