WHAT IS INFLATION?

Inflation is the generalized and sustained increase in the prices of goods and services in an economy over a period of time. When there is inflation, it means that prices have risen or have been “inflated,” and that with each unit of currency you can buy fewer things. That is, inflation reflects the decrease in the purchasing power of the currency, it can have different causes, such as excess demand compared to supply, increased production or import costs, the expectations of economic agents or policies. expansive monetary. Inflation can also be classified according to its magnitude or intensity. Thus, we speak of moderate inflation, rampant inflation and hyperinflation when prices rise at rates greater than 50% monthly.