Purposes

  • Learning what inflation is and how to obtain related data

Inflation

As you may know from this post inflation is not good for our fiat money. Here a book definition

Inflation is a sustained increase in the general price level of goods and services in an economy over a period of time.

In a simpler language:

You can buy fewer things with the same amount of money. Decreases the value of money.

It could be caused by

  • Increase in the money supply. Money printing.
  • Production costs. If the energy cost increases, that could affect other products that depend on electricity to be manufactured.
  • Increase in aggregate demand. When there is more demand for a product than production, it could increase in price. We saw that with graphic cards

How to obtain data