- 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 example of inflation is what happens to an air mattress when you blow it up.
The inflation of the balloon took five hours.
Other Word Forms
Origin of inflation
- 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”).