What is Inflation?
The upward trajectory of the price of goods and services, and, subsequently, downward trajectory of purchasing power. Typically, countries' central banks like to keep the inflation rate at 2-3%. The major role of a central bank is to keep inflation and deflation in check, in an attempt to keep the excessive growth of prices to a minimum.
Why You Care
As a consumer, when inflation rises, every dollar will buy a smaller percentage of a good. For example, if the inflation rate is 2%, then a $1 pack of gum will cost $1.02 in a year.
A country's stock market will likely gain due to inflation. Moreover, profits for a country's production firms will rise as their exports are now cheaper as the currency gets devalued relative to other countries' currencies.
Secretary of Treasury,
Federal Reserve Governor,
Federal Reserve Chairman,
CPI (Consumer Price Index),
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