INFLATION Meaning and
Definition
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Inflation refers to a general and sustained increase in the price level of goods and services within an economy over a period of time. It is commonly measured as an annual percentage change in consumer prices or a decline in the purchasing power of money.
When inflation occurs, the purchasing power of a given amount of money decreases, meaning that it can buy fewer goods and services than before. This decrease in purchasing power ultimately reduces the standard of living for individuals and households. Moreover, inflation erodes the value of savings and fixed-income investments, as the returns on these assets may not keep pace with rising prices.
There are various causes of inflation, including demand-pull inflation and cost-push inflation. Demand-pull inflation occurs when aggregate demand outpaces the available supply of goods and services, leading to price increases. On the other hand, cost-push inflation occurs when input costs, such as labor or materials, rise, forcing businesses to pass these higher costs onto consumers through higher prices.
Governments and central banks use various monetary and fiscal policies to try to control inflation. These may include adjusting interest rates, increasing or decreasing government spending, or implementing regulatory measures. Central banks often set inflation targets to maintain price stability and promote economic growth.
Overall, inflation is an important economic concept to understand as it affects the purchasing power of individuals, businesses, and the overall health of an economy.
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Distention of a part by a liquid or a gas.
A practical medical dictionary. By Stedman, Thomas Lathrop. Published 1920.
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The state of being distended, as with air; the state of being puffed up, as with pride or vanity.
Etymological and pronouncing dictionary of the English language. By Stormonth, James, Phelp, P. H. Published 1874.
Top Common Misspellings for INFLATION *
* The statistics data for these misspellings percentages are collected from over 15,411,110 spell check sessions on www.spellchecker.net from Jan 2010 - Jun 2012.
Other Common Misspellings for INFLATION
Etymology of INFLATION
The word "inflation" derives from the Latin word "inflatius", which is the past participle of the verb "inflare". "Inflare" is composed of the prefix "in-" meaning "into" or "upon", and the verb "flare" meaning "to blow" or "to inflate". Therefore, "inflation" originally referred to the act of blowing or inflating something, and its meaning evolved over time to specifically describe the increase in general price levels in an economy.
Similar spelling words for INFLATION
- inflator,
- in play,
- infiltration,
- inflectional,
- inflexion,
- in a flash,
- inflatable,
- involution,
- inflammation,
- invalidation,
- inflationary,
- inflaming,
- inflate,
- infliction,
- Inflating,
- inflect,
- inflame,
- inflated,
- in full,
- inviolate,
- inflater,
- inflict,
- inflection,
- inflammable.
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