Money & budgets
inflation
A general rise in prices, which reduces what a dollar buys. Usually measured by the Consumer Price Index or the personal consumption expenditures index.
In full
Inflation is a rate of change, so falling inflation still means prices are rising, just more slowly; actual price declines are deflation. Different measures give different numbers because they use different baskets and weightings. Many federal programs and tax brackets are indexed to inflation, so the measure chosen has direct budget consequences.
Also written as: Consumer Price Index, CPI
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