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Inflation 2019

A coin worth 50 million Reichsmarks 1923

Inflation means that the general level of prices is going up, the opposite of deflation. More money will be needed to pay for goods (like a loaf of bread) and services (like getting a haircut at the hairdresser's). Economists measure inflation regularly to know an economy's state. Inflation changes the ratio of money towards goods or services; more money is needed to get the same amount of a good or service, or the same amount of money will get a lower amount of a good or service. Economists defined certain customer baskets to be able to measure inflation. There can be positive and negative effects. Opposite of inflation is deflation.