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From the link you kindly provided, your hypothetical case is not inflation. Although "inflation" is sometimes used to refer to a rise in the prices of a specif
by kirubakaran 18y ago
From the link you kindly provided, your hypothetical case is not inflation.
Although "inflation" is sometimes used to refer to a rise in the prices of a specific set of goods or services, a rise in prices of one set (such as food) without a rise in others (such as wages) is not included in the original meaning of the word. Inflation can be thought of as a decrease in the value of the unit of currency.
- run4yourlives 18y ago>"Measuring inflation requires finding objective ways of separating out changes in nominal prices from other influences related to real activity. In the simplest possible case, if the price of a 10 oz. can of corn changes from $0.90 to $1.00 over the course of a year, with no change in quality, then this price change represents inflation. But we are usually more interested in knowing how the overall cost of living changes, and therefore instead of looking at the change in price of one good, we want to know how the price of a large 'basket' of goods and services changes." Basically, I'm trying to point out that inflation is a hotly contested complex term, which we are currently demonstrating by linking to different sections of the same entry that somewhat contradict. It is far to large a topic to be understood in a one page primer that states: "Government prints too much money."