Concept in Definition ABC

Inflation is the general increase in the price level of products, goods and services on the market.

For economics, inflation is the period in which economy of a nation or country in which a sustained and comprehensive increase in the prices and costs of goods and services is perceived to the detriment of the purchasing power of the consumer. In other words, inflation is the fall in market value, which is often accompanied by the devaluation of a national currency, although both are distinguished as distinct processes and independent.
The persistence of inflation can occur over a few months, years, or even decades, and over time are often common scenarios in many countries of the world, due to fluctuating economies worldwide.

In order to measure inflation, the Index Consumer Price or CPI, which indicates the average price variations of the different products, goods and services that a typical consumer usually purchases. Is measurement it can occur over different periods of time or over a long term with the objective of recording the percentage of inflation perceived. A reference indicator for this measurement is the value of the

"basket or basic basket", which is configured by a set of products that an average consumer requires to live with their family monthly and their corresponding price variations, so that approximately how much money is needed to live at a particular time and place can be determined.

Inflation can be of two types: either moderate, which refers to the moderate increase in prices over a considerable period of time, or galloping, which refers to a much more marked increase usually associated with periods of economic crisis.
In turn, the causes of inflation may be linked both at cost and at demand and even, sometimes, it is due to a strategy economic government to moderate the effects of a crisis in society. It is said in those cases that it is a self-built inflation.

Inflation Issues