Inflation is a measure of the rate at which the general level of prices for goods and services is rising, and subsequently, the purchasing power of currency is falling. When inflation is high, each unit of currency buys fewer goods and services, resulting in a decrease in the value of money. Inflation is commonly expressed as a percentage increase over a specific period, often on an annual basis. It can be influenced by factors such as supply and demand dynamics, changes in production costs, government policies, and economic conditions.
