When things that you need like fruits, vegetables, cars, houses, etc start costing more, you’ve been hit by inflation! Every year, the price index of a particular currency is calculated by economists. The price index shows how much the general ‘cost of living’ has increased compared to the previous year. Inflation can also be defined as the phenomenon that reduces the power that a particular currency brings with it to purchase certain items.
Did you know? It has been proved by many economists that a slow, rising cost of living actually protects a country from recessions and increases investment in areas such as real estate.