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Inflation Meaning: Definition, Examples, and Translations

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inflation

[ษชnหˆfleษชสƒ(ษ™)n ]

Definition

Context #1 | Noun

economy

Inflation is the rate at which the general level of prices for goods and services is rising, and, subsequently, the purchasing power of currency is falling.

Synonyms

cost of living increase, price increase, rise in prices.

Which Synonym Should You Choose?

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Word Description / Examples
inflation

Commonly used in economic discussions to describe a general increase in prices and fall in the purchasing value of money over time.

  • The central bank implemented new policies to control inflation.
  • High inflation can erode the value of your savings.
price increase

More specific to the rise in cost of particular goods or services, rather than a general economic condition.

  • The price increase of gasoline has affected many commuters.
  • There was a noticeable price increase in groceries last month.
rise in prices

General term that can be used interchangeably with 'price increase', often to describe a broader trend in increasing costs of goods and services.

  • A rise in prices during the holiday season is expected.
  • The rise in prices has led to a decrease in consumer spending.
cost of living increase

Used to describe the rising expenses that people need to cover for daily living, such as food, rent, healthcare, and transportation.

  • Due to the cost of living increase, many families are struggling to make ends meet.
  • Employees asked for higher wages to keep up with the cost of living increase.

Examples of usage

  • The inflation rate has been steadily increasing over the past year.
  • Inflation can have a negative impact on the economy.
  • The government is taking measures to control inflation.

Translations

To see the translation, please select a language from the options available.

Interesting Facts

Historical Origins

  • The term 'inflation' first appeared in the 19th century, originally referring to an increase in the amount of money in circulation.
  • During the Roman Empire, excessive minting of coins led to inflation, causing a drop in the value of money.

Economics

  • Hyperinflation is an extreme case where prices increase rapidly, often seen in countries like Zimbabwe and Germany in the 1920s.
  • Inflation can be measured by tracking the Consumer Price Index (CPI), which reflects the average price change over time of a basket of goods and services.

Pop Culture

  • Films and books often depict characters struggling with the effects of inflation, showing its impact on everyday life.
  • In the TV series 'Mad Men', the economic challenges of the 1960s included rising prices, symbolizing inflation's real-world effects.

Psychology

  • Public perception of inflation can affect consumer behavior; when people expect prices to rise, they tend to spend money quickly.
  • Fear of inflation can cause anxiety among consumers, impacting their spending and saving habits.

Science

  • In astrophysics, 'inflation' refers to a rapid expansion of the universe shortly after the Big Bang, which is unrelated to economic inflation but shares the theme of growth.
  • The concept of inflation in economics might be influenced by principles from thermodynamics, where systems can expand or contract based on energy dynamics.

Origin of 'inflation'

The word 'inflation' originated from the Latin word 'inflatio', which means a puffing up. In the 19th century, it was first used in an economic context to describe the increase in the money supply. Over time, the meaning evolved to represent the general increase in prices of goods and services.

See also: inflated, overinflated.

Word Frequency Rank

Ranking #3,475, this word is part of upper-intermediate vocabulary. While not among the most basic terms, it appears often enough to be valuable for advanced communication.