Inflation

• Deflation occurs when there is a decrease in the general price level of goods and services.
• The Consumer Price Index (CPI) measures changes in the cost of living, while the Retail Prices Index (RPI) includes mortgage interest payments.
• Inflation is the rate at which prices are rising over time.
• Another cause of inflation is an increase in production costs due to factors such as rising wages or raw material prices.
• Hyperinflation refers to very high levels of inflation that can lead to economic instability and currency devaluation.
• Demand-pull inflation refers to an excess of aggregate demand over aggregate supply, leading to higher prices.
• Inflation can be caused by an increase in demand or supply factors such as wage increases, tax cuts, government spending, and oil prices.
• Disinflation describes a slowing down or reversal of inflationary trends.
• Cost-push inflation results from an increase in production costs due to factors like raw material shortages, energy price hikes, and labor disputes.
• Stagflation combines elements of both stagnant growth and inflation.
• Disinflation is a slowing down of the rate of inflation towards zero.
• What is inflation?


  Increase in the general price level of goods and services in an economy over a period of time.