inflation

• Inflation?

   sustained increase in the average price level of goods/services in an economy
• The UK has an inflation target of 2% per annum

  • Low inflation is better than no inflation as it is a sign of economic growth
• inflation can also be seen as?

  fall in value of money over time, caused by an increase in the general price level

  
  

  purchasing power of money fallen

  fixed amount of money buys less than before
• y

  
• what is hyperinflation?

  prices rise extremely quickly and money rapidly loses its value