Inflatsioonina

Inflatsioonina is a term that refers to the general increase in prices and fall in the purchasing value of money. When inflation occurs, each unit of currency buys fewer goods and services. Consequently, inflation reflects a reduction in the purchasing power per unit of money – a loss to the volume of what can be bought with it ifonly the price of money is not to be corrected. A persistent and often unexpected rise in the general price level in an economy leads to a reduction in the real value of money and other monetary units of account.

The most common measure of inflation in many countries is the Consumer Price Index (CPI), which tracks the average change over time in the prices paid by urban consumers for a market basket of consumer goods and services. Other measures include the Producer Price Index (PPI), which measures the average selling prices received by domestic producers for their output, and the Personal Consumption Expenditures (PCE) price index, which is a measure of prices on all goods and services purchased by persons.

The causes of inflation are varied and can include demand-pull inflation, which occurs when demand for goods and services outstrips supply, cost-push inflation, which arises from increases in the cost of production, and built-in inflation, which is often linked to past inflation and expectations about future inflation. Governments and central banks often aim to manage inflation through monetary and fiscal policies, seeking to maintain price stability. High inflation rates can erode savings, distort economic decisions, and lead to uncertainty.