Inflation refers to the general increase in the prices of goods and services in an economy over time. It means that the purchasing power of money decreases as prices rise.
When inflation is high, the cost of living increases, and people need more money to maintain their standard of living. It can be caused by various factors, including an increase in the money supply, rising production costs, and an increase itn demand for goods and services.
High inflation can have negative effects on the economy, such as reduced investment and economic growth, decreased purchasing power, and increased interest rates.
