Inflation

Inflation

In economics, inflation is called sustained and widespread increase in the price level of goods and services in a given period. It is the anti-deflation process that consists in reducing prices.

The existence of inflation over a period represents a steady increase in the price of goods in general, which affects the purchasing power of the population by reducing their purchasing power and therefore their quality of life.

Inflation could hurt the economy in several ways: shrinking the purchasing power of money, may favor creditors, creates some administrative costs, distorts the decision-making affecting investment production affects the balance of payments ...