Money and banking / B1

in-FLAYSHUN/ɪnˈfleɪʃn/

Inflation is a general rise in prices: high inflation; inflation fell to two per cent. A price rise can be one product; inflation is the wider economy. Inflate is the verb (inflate a balloon; inflate prices). Deflation is falling prices. Uncountable: not “an inflation”. UK news talks of the inflation rate and the cost of living.

Meaning

A general rise in prices, so that money buys less.

Examples

• “Inflation made weekly food shops more expensive.”
• “Inflation made the weekly shop noticeably dearer.”
• “The Bank’s target is to keep inflation near two per cent.”

Good to know

Uncountable: inflation; the inflation rate. One product: a price rise. Opposite direction: deflation. Not “an inflation”.

Topics

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