What is Inflation? - Money Matters Explained #shorts

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Published on April 20, 2023 9:30:05 PM ● Video Link: https://www.youtube.com/watch?v=uz1EOUMfShI

Duration: 0:47

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Inflation explained in 60 seconds. Inflation is the rate at which the general price level of goods and services in an economy increases over time, leading to a decrease in the purchasing power of money. Inflation is typically measured by the Consumer Price Index (CPI) or the Producer Price Index (PPI). Central banks, like the Federal Reserve in the US, monitor and manage inflation through monetary policy tools such as interest rates and open market operations. Moderate inflation is considered normal and healthy for an economy, as it can promote spending and investment. However, high inflation erodes the value of money, leading to uncertainty and reduced purchasing power. Subscribe for more financial facts!