Inflation is the rate at which the price of goods and services in a given economy rises. Inflation may have a detrimental influence on society if it leads to higher costs for fundamental needs such as food. Inflation may affect almost every commodity or service, including necessities like housing, food, medical care, and utilities, as well as luxuries like cosmetics, vehicles, and jewellery. Once inflation has spread across an economy, people and companies alike are concerned about the possibility of future inflation. Inflation is monitored by central banks in industrialised economies, particularly the Federal Reserve in the United States. The Federal Reserve has a 2% inflation objective and modifies monetary policy to counteract it if prices increase too much or too rapidly. Inflation is a worry because it reduces the value of money saved today. Inflation reduces a person's purchasing power and might even make it difficult to retire.

Saket Kumar

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