Inflation refers to an increase in goods and services prices which reduces  purchasing power over time.

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Inflation can be measured using two kinds of indexes Consumer Price Index (CPI) and the Wholesale Price Index (WPI).

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CPI is used to measure the percentage change in the price basket of goods and services consumed by households.

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Inflation can be both positive or negative depending on the rate of change and individual viewpoint.

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Inflation is the opposite of deflation, which indicates the decline of prices in an economy.

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Suitable investments can improve the chances of securing the value of savings by helping them grow at the right pace to overtake inflation.

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Inflation can be managed by regularly doing financial checks of expenses and properly doing savings and investments.

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Inflation is caused by three factors including demand pull, cost push, inflation expectations.

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Demand-pull inflation occurs when the total demand for goods and services exceeds the supply that can be sustainably produced.

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Cost-push inflation occurs when the total supply of goods and services in the economy that can be produced falls, which is caused by an increase in the cost of production.

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Inflation expectations are the beliefs that households and companies have about future price increases which may affect their current economic decisions.

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