Inflation Rates

Inflation rates refer to the percentage increase in the general price levels of goods and services in an economy over a specific period, typically measured on a yearly basis. It indicates how much more expensive a set of goods and services has become, compared to a previous period, often using a price index such as the Consumer Price Index (CPI) or the Producer Price Index (PPI) to track changes. High inflation rates can erode purchasing power, meaning consumers can buy less with the same amount of money, while low or negative inflation (deflation) can indicate economic stagnation. Inflation rates are crucial for policymakers, economists, and businesses as they reflect economic health and influence monetary policies, interest rates, and investments. Understanding inflation rates helps individuals and organizations make informed financial decisions.