Inflation, a term derived from the concept of physical expansion, is more analogous to the idea of ascendancy, for economic inflation is defined as a rise in the price of a “market basket” of goods over a month, year, or other given amount of time. Inflation, then, is evidently a relational concept.
As products and services get more expensive, this inherently means that the money one possesses is worth less than it was valued prior to inflation, and thus, the purchasing power of the average consumer is compromised. In extreme cases, inflation becomes almost completely uncontrollable, and at this point, it is deemed “hyperinflation.” The most critical numbers behind inflation are those of inflation rates, and accordingly, this is how its impact is measured.
