- Inflation is defined as the act of filling something up with air.
An example of inflation is what happens to an air mattress when you blow it up.
Inflation is defined as an increase in the amount of money and credit in the economy in relation to the supply of goods and services.
There is typically a correlation between the quantity of goods available and the amount of money in circulation.
- If more goods become available, more money must be put into circulation or prices will actually drop.
- If less goods or dollars are available, prices will increase, the dollar will be worth less. This is called inflation.
- An example of inflation is businesses raising prices to cover the increased price of goods and services during a period of short supply in an attempt to get the same value for their goods and services.
- An example of inflation is a gallon of milk costing five dollars today when it cost fifty cents in the 1960s.
- an inflating or being inflated
- increase in the amount of money and credit in relation to the supply of goods and services
- condition resulting from this, characterized by a general increase in price levels, specif. an excessive or persistent increase, leading to a decline in purchasing power
Origin of inflationMiddle English inflacioun from Classical Latin inflatio
- The act of inflating or the state of being inflated.
- a. A persistent increase in the level of consumer prices or a persistent decline in the purchasing power of money.b. The rate at which this increase occurs, expressed as a percentage over a period of time, usually a year.
- An act, instance of, or state of expansion or increase in size, especially by injection of a gas.
- The inflation of the balloon took five hours.
- (economics) An increase in the general level of prices or in the cost of living.
- (economics) A decline in the value of money.
- (economics) An increase in the quantity of money, leading to a devaluation of existing money.
- Undue expansion or increase, as of academic grades.
- (cosmology) An extremely rapid expansion of the universe, theorised to have occurred very shortly after the big bang.
From Middle English, from Old French inflation (“swelling”), from Latin īnflātiō (“expansion", "blowing up”), from īnflātus, the perfect passive participle of īnflō (“blow into", "expand”), from in (“into”) + flō (“blow”).
inflation - Investment & Finance Definition
The rise in prices of goods and services. Inflation is measured by the percentage of price increase. For example, a moderate rate of inflation, approximately 1 to 3 percent, is seen as healthy for an economy. When prices rise more than 3 percent, inflation can produce economic turmoil. People who don’t have the ability to increase their income at the same rate as inflation, such as retirees or students, are particularly hurt. If inflation rises to excessively high levels, that is called hyperinflation. Inflation is caused by too many dollars chasing too few goods.