Inflation

Definition

The rate at which the general level of prices for goods and services rises, causing purchasing power to fall.

Parts of Speech

Noun

Pronunciation

American English

IPA Pronunciation: /ɪnˈfleɪʃən/
Respelling: in-FLAY-shun (with "in" as in "tin," "FLAY" as in "say," and "shun" as in "nation")

British English

IPA Pronunciation: /ɪnˈfleɪʃən/
Respelling: in-FLAY-shun (with "in" as in "tin," "FLAY" as in "say," and "shun" as in "nation")

In both dialects, "inflation" places the primary stress on the second syllable, "FLAY." The pronunciation is the same across both American and British English, focusing on the clear articulation of "in-FLAY-shun."

Etymology

The term "inflation" originates from the Latin word "inflatio", which means "a blowing into, a puffing up". The economic sense of a general rise in prices dates from the early 20th century.

Derivatives

Inflationary
Inflate
Inflator
Inflationism
Inflationist

Synonyms

Price rise
Hyperinflation
Price surge

Antonyms

Deflation
Stagnation
Depression

Usage

Inflation is a key concept in economics and is often measured by indices such as the Consumer Price Index (CPI) or the Producer Price Index (PPI). It affects various economic factors, including interest rates, purchasing power, and economic policies.

Related Terms

Monetary policy
Consumer Price Index (CPI)
Cost of living
Purchasing power
Economic bubble

Detailed Definition

Noun

Inflation (Noun, General): A sustained increase in the general price level of goods and services in an economy.
- Example: "Inflation has eroded the value of the currency over the past decade."

Inflation (Noun, Economic Indicator): A measure of the rate at which the general level of prices for goods and services is rising.
- Example: "The government aims to keep inflation under control to ensure economic stability."

Note: While "inflation" is most commonly used in the context of economics, it can refer to the act of increasing the volume of something, especially by introducing a gas.