What is inflation?

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Question: What is inflation?

Answer: Inflation is the rate at which the general level of prices for goods and services is rising, and subsequently, purchasing power is falling. It is measured by the Consumer Price Index (CPI), which tracks the prices of a basket of goods and services over time. Inflation can be caused by a variety of factors, including an increase in the money supply, a decrease in the supply of goods and services, and an increase in demand.

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