Inflasjon

Inflasjon, or inflation, refers to the rate at which the general level of prices for goods and services rises, resulting in a decrease in purchasing power. It is typically expressed as a percentage increase over a specific period, often annually. Inflation indicates how much more expensive a set of goods and services has become over a given time frame, reflecting the changing value of money. Central banks, such as the Federal Reserve in the United States, monitor inflation closely and may adjust monetary policy to manage economic growth and control inflation.

There are several types of inflation, including demand-pull inflation, which occurs when demand for goods and services exceeds supply; cost-push inflation, which happens when production costs rise, leading to higher prices; and built-in inflation, which relates to adaptive expectations and wage-price dynamics. It can significantly impact economies, influencing savings, investment, and consumption behaviors. High inflation can erode purchasing power and lead to uncertainty, while low inflation is often associated with stable economic growth. Central banks aim for a moderate inflation rate that balances economic growth and price stability.