Inflation
/ɪnˈfleɪʃən/
Definitions
2 meaningsA sustained increase in the general price level of goods and services in an economy over a period of time.
/ɪnˈfleɪʃən/
A general increase in prices and fall in the purchasing value of money.
The central bank is trying to combat inflation by raising interest rates.
💡 Simply: Imagine everything you buy getting more expensive, like your favorite candy bar costing more and more. That's inflation – your money buys less stuff.
👶 For kids: When things cost more money than before, it's like inflation!
More Examples
Inflation is a significant concern for investors.
Rising inflation can decrease the standard of living.
How It's Used
"The government is trying to control inflation through monetary policy."
"High inflation rates can erode the value of savings."
The act of filling something with air or gas.
/ɪnˈfleɪʃən/
An act of inflating something.
The inflation of the football was done using a pump.
💡 Simply: Like when you blow air into a balloon or a tire, that's also 'inflation'.
👶 For kids: Blowing air into something, like a balloon!
More Examples
Check the tire inflation regularly to ensure safety.
The inflation process took only a few seconds.
How It's Used
"The inflation of the tire was completed in minutes."
From Late Latin *inflatiō* ('a blowing up'), from *inflare* ('to inflate'), from *in-* ('in, into') + *flare* ('to blow'). The term gained prominence in economics in the 20th century.
The term 'inflation' was initially used to describe an increase in the money supply before its broader application to rising prices. Historically, significant inflationary periods often coincide with major economic or political events.
Memory tip
Think of blowing up a balloon (inflating) – prices are expanding.
Word Origin
"to blow up, swell up"