Understanding Inflation: Causes, Effects, and Control Measures in Macroeconomics

[Morenike Ifeolowa]

Inflation is a crucial concept in macroeconomics, as it affects the purchasing power of money, cost of living, and overall economic stability. Here are some key points about inflation:
Definition: 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. And inflation is typically measured using price indices such as the Consumer Price Index (CPI) and the Producer Price Index (PPI).

Types of Inflation; Demand-Pull Inflation,Cost-Push Inflation and Built-In Inflation.

Causes of Inflation; Purchasing Power,Interest Rates,Savings and Investment and Income Distribution.

Controlling Inflation; Monetary Policy,Fiscal Policy and Supply-Side Policies.

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