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Trading and Investment Terms

Inflation

Inflation refers to the rise in the prices of most goods and services of daily or common use, such as food, clothing, housing, etc.

Inflation refers to the rise in the prices of most goods and services of daily or common use, such as 

Food

Clothing 

Housing

Recreation

Transport

Consumer staples, etc. 

Inflation measures the average price change in a basket of commodities and services over time.

Inflation is classified into three types: 

Demand-Pull inflation,

Cost-Push inflation

Built-In inflation.

The most commonly used inflation indexes are the Consumer Price Index (CPI) and the Wholesale Price Index (WPI).

Those with tangible assets, like property or stocked commodities, may like to see some inflation as that raises the value of their assets.

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