Inflation, et al.

To some extent, most of us are familiar with the concept of
price inflation. We see its impact over the years as the prices
of our purchases slowly increase. However, “inflation” is just
one member of a whole family of terms. Here are some of the
most important “-flation” words and what they mean for you
and the economy.
Inflation: Inflation occurs when the cost of goods and
services rises, resulting in a loss of purchasing power. This
can be the result of more currency being circulated in an
economy or an increasing pace of economic growth. In the
United States, the Federal Reserve targets a 2 percent inflation
rate to promote steady growth, easy borrowing and
predictable pricing.

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