How to Fight Inflation
Inflation can hurt individuals and businesses, but careful financial planning and monitoring of economic indicators can help mitigate its effects.
Inflation refers to a rise in prices, which results in a decline in purchasing power over time. This decline in purchasing power is measured by the average price increase of a selected basket of goods and services over a specific period. The rise in prices, typically expressed as a percentage, means that the same amount of currency can buy less compared to previous periods. Inflation can be contrasted with deflation, which occurs when prices fall and purchasing power increases.
Understanding Inflation
Measuring price changes for one or two products is straightforward, but our needs extend beyond individual products. To live comfortably, we require a diverse array of products and services. These include essential commodities like food grains, metals, and fuel, as well as utilities such as electricity and transportation. Services like healthcare, entertainment, and labor also contribute to our well-being.
