Inflation is the rate at which the general level of prices for goods and services is rising and, consequently, the purchasing power of currency is falling.
 | | Term of the Day | Words to Know | | |  | | Inflation | | Inflation is a quantitative measure of the rate at which the average price level of a basket of selected goods and services in an economy increases over a period of time. It is the constant rise in the general level of prices where a unit of currency buys less than it did in prior periods. Often expressed as a percentage, inflation indicates a decrease in the purchasing power of a nation's currency. | | Read More » | | 9 Common Effects of Inflation | | Since investors haven't seen inflation or significant price rises in years, it's worth brushing up on the most common effects of inflation. Is inflation ever good? If you like your job it is. | | Read More » | | | SPONSORED BY INVESCO | | The Complete Guide to ETFs | | ETFs are becoming increasingly popular and soaring to new heights among investors. Invesco's insights can help you determine if these investment vehicles are right for you. | | Learn More » | | | Demand-Pull Inflation | | Demand-pull inflation is the upward pressure on prices that follows a shortage in supply. Economists call it "too many dollars chasing too few goods." | | Read More » | | | Cost-Push Inflation | | Cost-push inflation occurs when overall prices rise (inflation) due to increases in production costs such as wages and raw materials. | | Read More » | | | Purchasing Power | | Purchasing power is the value of a currency in terms of the goods or services that one unit of it can buy. | | Read More » | | | Money Supply | | The money supply is the entire stock of currency and other liquid instruments in a country's economy as of a particular time. | | Read More » | | | | | | CONNECT WITH INVESTOPEDIA | | | | | | | |
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