Inflation is defined as

Question

Quizplus · Accepted Answer

Inflation is defined as a sustained increase in the average level of prices. It is not just a one-time increase in prices or an increase in prices of specific products, but rather a general increase in prices that persists over time. A sudden increase in the weighted average of all prices may be a component of inflation, but it is not a sufficient definition of inflation. Similarly, an increase in relative prices or any increase in the general price level may not necessarily qualify as inflation.

Inflation Is Defined as