- An increase in the level of prices or a decline in purchasing power, caused by an increase in available currency and credit beyond the goods and services that are available.
increase, hike, rise
Related Terms and Acronyms
- Commerce — Definition,
- The systems and activities that impact business and trade within a nation and abroad.
- Consumer Price Index (CPI) — Acronym, Important,
- An index that measures movements in the average price of products and services typically consumed by Canadian families.
- Cost of Living Adjustment (COLA) — Acronym,
- A method used to keep salaries and benefits in line with inflation by following an index such as the Consumer Price Index.
- Depression — Definition,
- A prolonged downturn in the economy and level of business activity.
- Disinflation — Definition,
- A reduction in the inflation rate as a result of either government policy or a decline in economic activity.
- Economic Growth — Definition,
- The rate of change in output from one year to the next.
- Economic Indicators — Definition,
- Statistics that help determine how the economy is faring. They include the Consumer Price Index, housing starts, and unemployment rates, among others.
- Gross Domestic Product (GDP) — Acronym,
- The total value of all the goods and services produced by the Canadian economy in a single year.
- Gross National Product (GNP) — Acronym,
- The value of all goods and services accruing to Canadians in a given year. It equals Gross Domestic Product, plus income of Canadians from foreign production, less income from Canadian production earned by non-residents (such as interest and dividends paid to foreign lenders).
- Inflation Protection — Definition,
- A protection found in some insurance policies that allows policy limits to increase with inflation.
- Inflation-Protected Annuity — Definition,
- An annuity that guarantees a return equal to or above inflation.
- Macroeconomics — Definition,
- A study of the economy as a whole, particularly the interaction of its various components.
- Microeconomics — Definition,
- Looking at the individual parts of the economy, with emphasis given to the market process and how it works.
- Monetary Policy — Definition,
- The Bank of Canada's ability to influence the economy through changes in short-term interest rates and the money supply.
- Recession — Definition,
- A prolonged period (popularly defined as two successive quarters) in which economic activity shrinks.
- Stagflation — Definition,
- A time period where the unemployment rate and the rate of inflation are both relatively high.