Inflation refers to the devaluation of money, which leads to increased living costs as prices go up. It is commonly assessed through price indices like the Consumer Price Index (CPI) or the Producer Price Index (PPI), which track the price changes of a set of goods and services and provide insights into the overall inflation rate. Inflation can arise from various factors, including demand-pull and cost-push influences. Demand-pull inflation occurs when aggregate demand surpasses supply, driving up prices. On the other hand, cost-push inflation originates from increasing production costs, such as wages or raw materials, resulting in higher prices. Inflation can also be categorized based on its severity, ranging from mild or moderate inflation to hyperinflation. — Ámbito geográfico: Internacional
The Impacts of inflation on financial markets
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Inflation refers to the devaluation of money, which leads to increased living costs as prices go up. It is commonly assessed through price indices like the Consumer Price Index (CPI) or the Producer Price Index (PPI), which track the price changes of a set of goods and services and provide insights into the overall inflation rate. Inflation can arise from various factors, including demand-pull and cost-push influences. Demand-pull inflation occurs when aggregate demand surpasses supply, driving up prices. On the other hand, cost-push inflation originates from increasing production costs, such as wages or raw materials, resulting in higher prices. Inflation can also be categorized based on its severity, ranging from mild or moderate inflation to hyperinflation. — Ámbito geográfico: Internacional