Inflation is a general term for the rate at which prices of goods increase. The increase in prices is particularly damaging for households that are lower in income.
This is because poor people often have less disposable income and cannot take advantage of temporary discounts to save money.
The rate of inflation is a function of the amount of money in circulation in a country. Currently, the level of inflation is at its highest level since 1982.
This phenomenon is caused by a wide variety of reasons, but the primary cause of inflation is the loss of purchasing power. Inflation affects all levels of society
Consumer price index (CPI) is one common way to track inflation. It measures changes in prices before they reach the retail level.
Aswath Damodaran, a professor of corporate finance at New York University's Stern School of Business, says that a small positive inflation rate is economically useful,
but too much inflation can be detrimental to an economy's long-term performance. Higher inflation has historically resulted in higher prices in energy, real estate and value stocks