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what is inflation?
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Answer Posted / sathish,pradeep(warangal-andhr
The overall general upward price movement of goods and
services in an economy, usually as measured by the Consumer
Price Index and the Producer Price Index. Over time, as the
cost of goods and services increase, the value of a dollar
is going to fall because a person won't be able to purchase
as much with that dollar as he/she previously could. While
the annual rate of inflation has fluctuated greatly over the
last half century, ranging from nearly zero inflation to 23%
inflation, the Fed actively tries to maintain a specific
rate of inflation, which is usually 2-3% but can vary
depending on circumstances. opposite of deflation.
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