Inflation

1. The rate at which prices are rising. Usually measured in the UK by the consumer price index (CPI).

2. A situation in which prices generally are rising. This is the usual situation in most developed economies at most times. Contrasted with the more unusual situation of Deflation, when prices generally are falling.

See also

• Consumer price index
• Cost-push inflation
• Crawling peg system
• Deflation
• Demand-pull inflation
• Inflation risk
• Real return
• Stagflation
• Treasury inflation-indexed securities