Inflation is the economic phenomenon characterized by a sustained increase in the general price level of goods and services in an economy over a period of time. It signifies a reduction in the purchasing power of money, meaning that consumers are able to buy fewer goods and services for the same amount of currency. Inflation is typically measured by the Consumer Price Index (CPI) or the Producer Price Index (PPI). Various factors can contribute to inflation, including demand-pull inflation (where demand outstrips supply), cost-push inflation (where production costs increase), and built-in inflation (where wages and prices continuously rise). Moderate inflation is often considered a sign of a growing economy, but high inflation can lead to economic instability and uncertainty. Central banks may manage inflation through monetary policy tools, such as interest rate adjustments, to strive for price stability and economic growth.
Cryptocurrency Prices Respond to Economic Indicators Recent inflation figures have caught the attention of investors, leading to notable shifts in the cryptocurrency market. In December, the consumer price index (CPI)…