Many people wonder about what is inflation and when you define inflation you must mention that it is the general rise in the prices of common goods and services across an economy.
There are different types of inflation like hyperinflation, deflation, and stagflation to name a few.
The cause effect of inflation is when inflation has broad implications for an economy like the weakening of the buying power of a currency.
Government control of inflation is usually limited to price controls, bailouts and raising the intra-bank lending rate.
The inflation rate last year was only about 2.5 % and the current u.s. inflation rate is about 5 %. You can go online to find out what is the current uk inflation rate.
In most Western countries they calculate inflation using the Consumer Price Index CPI to find out what is the monthly and annual inflation rate.
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