Inflation

Definition

• 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.

Synonyms
increase, rise, hike

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.