What is Inflation?

What is Inflation?

A simple commonly used definition of the word inflation is simply "an increase in the price you pay or a decline in the purchasing power of money".

In other words, Price Inflation is when prices get higher or it takes more money to buy the same item.

Inflation is measured by the Bureau of Labor Statistics in the United States using the Consumer Price Index.

However, it appears that the meaning of the word inflation has changed over time.

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