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Definition of «inflation»

The term "inflation" refers to an increase in the general price level of goods and services within an economy over a period of time. This means that the purchasing power of money decreases, as it takes more money to buy the same items. Inflation can be caused by various factors, including an increase in demand for goods and services, a decrease in the availability of goods and services, or an increase in the cost of production.

Usage examples

  1. The government implemented strict measures to control inflation in the economy.
  2. The rise in prices of essential commodities indicates an increasing inflation rate.
  3. Inflation erodes the purchasing power of individuals, making it difficult for them to afford basic necessities.
  4. Wage increases often fail to keep up with inflation, leading to a decrease in real wages.
  5. Inflation can have a negative impact on savings and investment, encouraging people to spend rather than save.
  6. Higher inflation can result in increased borrowing costs for businesses and households.
  7. A decrease in the value of money due to inflation can lead to an increase in exports and a decrease in imports.
  8. Governments use inflation targets as a way to maintain price stability and sustainable economic growth.

Phrases with «inflation»

Sentences with «inflation»

  • As we saw earlier, even a modest rate of inflation of four percent can wipe out nearly all of the purchasing power of your nest egg during a 20 - year retirement. (plannersearch.org)
  • It is used to determine the actual worth of an investment after adjusting for inflation rate. (relakhs.com)
  • Most indicators point to subdued expectations for inflation in the period ahead. (rba.gov.au)
  • (see all sentences)

See also

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