inflation

• inflation


  increase in the general price level across an economy
• creeping inflation


  inflation that is slow and gradual
• hyperinflation


  inflation that is extremely high and fast-accelerating
• disinflation


  fall in rate of inflation
• deflation


  sustained fall in price level
• consumer price index (CPI)


  measure of the cost of goods and services purchased by the typical household in an economy
• retail price index (RPI)


  includes cost of living measures e.g. mortgage interest payments
• demand-pull inflation


  inflation which arises from rapid growth in aggregate demand, putting pressure on supply
• cost-push inflation


  inflation that occurs when firms respond to rising unit costs by increasing prices to protect their profit margins
• shoe-leather costs


  costs that people incur from trying to beat inflation and keep the value of their money
• menu costs


  costs incurred by a firm when the price of goods and services change
• globalisation


  increasing interconnectedness of the world