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What is Inflation?
The rise in the general price level over time and the resulting loss of money's purchasing power.
ExampleWith monthly inflation at 3%, annual compounded inflation reached 43%.The figures in the example illustrate the concept; they are not current market data.
Related terms
CPI (Consumer Price Index)An inflation measure that tracks the price change of a basket of goods and services bought by urban consumers.PPI (Producer Price Index)An index that measures changes in producer and wholesale prices; a leading indicator for consumer inflation.Base EffectWhen an unusually low or high value in the previous period makes current-period data look different than itGDP (Gross Domestic Product)The monetary value of all goods and services produced within a country's borders over a given period.Central BankThe official institution that sets monetary policy, manages interest rates and supervises the financialQuantitative EasingAn unconventional monetary policy tool in which the central bank buys assets to inject money into the market.
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Frequently asked questions
What is Inflation?
The rise in the general price level over time and the resulting loss of money's purchasing power.
What is Inflation called in Turkish?
In Turkish financial reporting and news, Inflation is called Enflasyon.
Which concepts are related to Inflation?
The concepts most often mentioned together with Inflation are CPI (Consumer Price Index) and PPI (Producer Price Index).