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Inflation in Economics: Types, Causes & Indexes

inflation graphic

What Is Inflation?
Inflation is an economic phenomenon wherein a currency loses its purchasing value over time due to the rising prices of goods and services. That means consumers’ buying power also decreases.

Inflation is represented by a percentage, which shows the rate of change in price levels of a diversified set of commodities during a specific period.

Various types of inflation differ based on what the cause is. Knowing these can help you better understand inflation and how it affects your everyday life.

Read on MoneyGeek