INFLATION

What Does INFLATION Mean?

The Quick Answer

INFLATION means "Rate of Increase in Prices."

More Observations...

Inflation is a term used in economics to refer to the rate of increase in prices over a given period of time. Inflation is measured in percentage increases across a year and represents a decrease in the purchasing power of money. Causes of inflation include:

• Increases in demand for goods and services.
• Increases in public spending.
• Tax reductions.
• Wage increases.

When high inflation coincides with a period of slow economic growth and high unemployment, this is known as stagflation.

Image for INFLATION

When I write INFLATION, I mean this:

Inflation leads to a decrease in the purchasing power of money.

Summary of Key Points

"Rate of Increase in Prices" is, by far, the most common meaning for INFLATION when it is used in a text. (Bear in mind that it could have another meaning if used in a different context.)

INFLATION
Definition:	Rate of Increase in Prices
Type:	Word
Guessability:	2: Quite easy to guess
Typical Users:	Adults

Example of INFLATION Used in a Text

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