WORLD HISTORY

Detailed explanation-1: -Inflation is an increase in the level of prices of the goods and services that households buy. It is measured as the rate of change of those prices. Typically, prices rise over time, but prices can also fall (a situation called deflation).

Detailed explanation-2: -As an economy grows, businesses and consumers spend more money on goods and services. In the growth stage of an economic cycle, demand typically outstrips the supply of goods, and producers can raise their prices. As a result, the rate of inflation increases. Inflation is a sustained rise in overall price levels.

Detailed explanation-3: -Broad increase in prices Some prices rise; some prices fall. Inflation occurs when there is a broad increase in the prices of goods and services, not just of individual items; it means, you can buy less for €1 today than you could yesterday. In other words, inflation reduces the value of the currency over time.

Detailed explanation-4: -Hot inflation indicates that consumer demand is outpacing supply, driving prices higher. Alternatively, supply chain problems may make goods more expensive. Either way, prices rise high enough to the point where spending declines. And when spending falls, the economy can easily tumble into a recession.

Detailed explanation-5: -Inflation is a rise in prices, which can be translated as the decline of purchasing power over time. The rate at which purchasing power drops can be reflected in the average price increase of a basket of selected goods and services over some period of time.