Economics - Macroeconomics - Inflation and deflation - Understanding Inflation

5 expandable sections. Section 1: 'What is Inflation?' - A sustained increase in the general price level. Measured by CPI (Consumer Price Index) - tracks a basket of goods. Inflation rate = % change in CPI. Section 2: 'Causes - Demand Pull' - Too much money chasing too few goods. Aggregate demand ri