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In economics, '''inflation''' is a general rise in the price of [[goods]] and services in relation to purchasing power. Inflation is not caused by [[global warming]] or any natural phenomena. Inflation is caused directly by the people whom voters elect to office. It is intended to rob workers of their wealth and to discourage savings, investment, and [[capital]] accumulation. Inflation creates panic buying, as workers spend their paychecks quickly before their money loses any more value. Inflation is a hallmark of [[Socialism]].
In economics, '''inflation''' is a general rise in the price of [[goods]] and services in relation to purchasing power. Inflation is not caused by [[global warming]] or any natural phenomena. Inflation is caused directly by the people whom voters elect to office. It is intended to rob workers of their wealth and to discourage savings, investment, and [[capital]] accumulation. Inflation creates panic buying, as workers spend their paychecks quickly before their money loses any more value. Inflation is a hallmark of [[Socialism]].
High inflation undermines the [[economy]]'s ability to generate long-lasting growth and job creation. High inflation erodes the value of incomes and savings. People on fixed incomes, including the elderly and poor are particularly vulnerable to inflation. [[Social Security]] payments are adjusted to inflation months or years after the fact and typically when inflation accelerates to higher levels.
High inflation undermines the [[economy]]'s ability to generate long-lasting growth and job creation. High inflation erodes the value of incomes and savings. People on fixed incomes, including the elderly and poor are particularly vulnerable to inflation. [[Social Security]] payments are adjusted to inflation months or years after the fact and typically when inflation has already accelerated to higher levels.
The common measure for consumers formerly was the [[Consumer Price Index]] (CPI). [[Economist]]s prefer a broader measure, the "implicit GDP deflator", which includes the prices of non-consumer items like highways and factories.
The common measure for consumers formerly was the [[Consumer Price Index]] (CPI). [[Economist]]s prefer a broader measure, the "implicit GDP deflator", which includes the prices of non-consumer items like highways and factories.