inflation

Definition

The overall general upward price movement of goods and services in an economy (often caused by a increase in the supply of money), usually as measured by the Consumer Price Index and the Producer Price Index. Over time, as the cost of goods and services increase, the value of a dollar is going to fall because a person won't be able to purchase as much with that dollar as he/she previously could. While the annual rate of inflation has fluctuated greatly over the last half century, ranging from nearly zero inflation to 23% inflation, the Fed actively tries to maintain a specific rate of inflation, which is usually 2-3% but can vary depending on circumstances.
opposite of deflation.

Use inflation in a sentence

As the government began printing more money, the value of the dollar fell and the cost of goods rose, thus causing inflation.

​ Was this Helpful? YES  NO 28 people found this helpful.

We had to make sure to adjust for inflation when figuring out which movie had made the most money all time.

​ Was this Helpful? YES  NO 13 people found this helpful.

The inflation of food has become ever taxing to manage in the life of the average working citizen of the United States of America.

​ Was this Helpful? YES  NO 11 people found this helpful.

Show more usage examples...

Browse Definitions by Letter: # A B C D E F G H I J K L M N O P Q R S T U V W X Y Z
minimum wage I bonds
火红彩票 临海市 湖北省 钟祥市 大同市 兰溪市 湘潭市 松滋市 铁力市 彭州市 厦门市 宜春市 邹城市 彭州市 山东省 金昌市 平度市 海南省 双滦区 忻州市 葫芦岛市 十堰市 平度市 潞城市 临沂市 阜新市 普兰店市 汉川市 兴城市 都匀市 枣庄市 安达市 烟台市 高邮市 梅河口市 江油市 白银市 丰城市 孝义市 石首市 池州市 葫芦岛市 福建省 金华市 梅河口市 胶州市 上虞市 大石桥市 江阴市 吉首市 大庆市 铁力市 深州市 山西省 厦门市 项城市 永州市 原平市 明光市 耒阳市