Inflation Definition

Inflation is the rate at which the general level of prices for goods and services rises over time.

What is Inflation?

Moderate inflation is generally considered normal in a growing economy, while high inflation erodes purchasing power.

Central banks often use interest rate policy to help keep inflation within a target range.

If the average price of goods rises by 4% over a year, the annual inflation rate is 4%.

An illiquid market is one where assets cannot be easily bought or sold without significantly affecting the price.

Implied volatility is the market's expectation of future price fluctuations, derived from options pricing.

An index is a statistical measure representing the performance of a group of assets, such as stocks, used to track a market or sector.