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Economics vocabulary · Inflation and Prices

Inflation

Meaning in economics, with examples

/ɪnˈfleɪʃn/nounCore term

In economics, inflation means: A general and continuing rise in the prices of goods and services in an economy, which means each unit of money buys less over time.

In Turkish: enflasyon

How it is used

Usually reported as an annual rate: inflation rose to 4%, inflation eased to 3.2%. Common verbs are rise, accelerate, peak, ease, slow and fall. Central banks fight, curb or bring down inflation, and the media discuss inflation figures and inflation expectations.

Example sentences

  1. Annual inflation slowed to 3.1% in March, mainly because of lower energy prices.

  2. High inflation hurts people on fixed incomes, such as pensioners, the most.

Common collocations

  • high inflation
  • annual inflation
  • inflation rate
  • bring down inflation
  • inflation expectations
  • consumer price indexA measure of the average change over time in the prices that households pay for a fixed basket of goods and services, used to calculate inflation.
  • deflationA general and lasting fall in the prices of goods and services across an economy; the opposite of inflation.
  • core inflationA measure of inflation that leaves out the most volatile prices, usually food and energy, to show the underlying trend in prices.
  • inflation targetThe rate of inflation that a central bank officially aims to achieve over the medium term, such as 2% a year.
  • purchasing powerThe amount of goods and services that a sum of money or an income can buy; it falls when prices rise faster than incomes.

This word in other fields

The same English word can have a different meaning in another field:

More terms: Inflation and Prices

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This page explains English vocabulary for learners. It is not financial advice.