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Inflation refers to the sustained increase in the general price level of goods and services in an economy over a period of time. When inflation occurs, each unit of currency buys fewer goods and services, effectively reducing the purchasing power of money. It is typically measured using price indices such as the Consumer Price Index (CPI) or the Wholesale Price Index (WPI). Inflation can arise from demand-pull factors, where aggregate demand exceeds aggregate supply, or cost-push factors, where rising production costs lead to higher prices. While moderate inflation is considered normal in a growing economy, high or unexpected inflation can have significant effects on different sections of society. __________ _______ __________ ________ _____ ___ _________ _________ ________.
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