Inflasjon

Inflation is the rate at which the general level of prices for goods and services rises, leading to a decrease in purchasing power. It is typically measured as an annual percentage change. When inflation occurs, each unit of currency buys fewer goods and services, eroding the value of money. Central banks attempt to limit inflation and avoid deflation to help maintain economic stability. There are various causes of inflation, including demand-pull inflation (where demand for goods exceeds supply), cost-push inflation (where production costs rise, leading to increased prices), and built-in inflation (where higher wages lead to increased production costs). Economists often analyze inflation using various indices, such as the Consumer Price Index (CPI) or the Producer Price Index (PPI). Moderate inflation is considered a normal aspect of a growing economy, but high or hyperinflation can have detrimental effects, causing uncertainty and reducing economic growth.