inflation

inflation definition - business

inflation

A general increase in the price level of goods and services. Unexpected inflation tends to be detrimental to financial assets, primarily because it is accompanied by rising interest rates. A point to keep in mind is that a certain amount of inflation is already embodied in most asset values. Compare deflation. See also consumer price index, core inflation, cost-push inflation, demand-pull inflation, GDP deflator, producer price index, purchasing power risk.

The American Heritage® Dictionary of Business Terms Copyright © 2009 by Houghton Mifflin Harcourt Publishing Company. Published by Houghton Mifflin Harcourt Publishing Company. All rights reserved.

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