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Inflation Rate

The inflation rate is the percentage increase in the price level of goods and services in an economy over a period of time.

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The inflation rate is typically measured by the Consumer Price Index (CPI) or other price indices. It reflects how much prices have increased over a specific period, usually a year. A moderate inflation rate is normal in a growing economy, but high inflation can erode purchasing power and savings, while deflation can lead to decreased economic activity. Central banks often target an optimal range of inflation, adjusting monetary policy to manage the inflation rate.
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