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                          inflation

                          Definition

                          The overall general upward price movement of goods and services in an economy (often caused by a increase in the supply of money), usually as measured by the Consumer Price Index and the Producer Price Index. Over time, as the cost of goods and services increase, the value of a dollar is going to fall because a person won't be able to purchase as much with that dollar as he/she previously could. While the annual rate of inflation has fluctuated greatly over the last half century, ranging from nearly zero inflation to 23% inflation, the Fed actively tries to maintain a specific rate of inflation, which is usually 2-3% but can vary depending on circumstances.
                          opposite of deflation.

                          Use inflation in a sentence

                          As the government began printing more money, the value of the dollar fell and the cost of goods rose, thus causing inflation.

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                          We had to make sure to adjust for inflation when figuring out which movie had made the most money all time.

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                          The inflation of food has become ever taxing to manage in the life of the average working citizen of the United States of America.

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                          fixed investment trust Milton Friedman
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