
Inflation
Economic Indicator
Inflation is often used as an economic indicator to gauge a country's economic health.

Reports show inflation is on the rise, indicating an overheating economy.
Not Always Negative
While inflation reduces purchasing power, moderate inflation is normal and can signal a growing economy.

The government aims for moderate inflation to encourage spending.
Central Bank Role
Central banks manage inflation by adjusting monetary policies such as interest rates.

To curb inflation, the central bank may hike interest rates.
Compare with
Hyperinflation
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