Answer:
Inflation is a decrease in the value of money while the prices of products are constantly rising.
Explanation:
Inflation occurs when the value of money falls, and products on the market gain in value, giving the buyers less chances to buy products.
Inflation is measured by observing the consumer basket over the years. The price difference represents inflation. If inflation rises by 2% then this is called good, healthy inflation. If the inflation goes up by 5% is called strong, bad inflation.
One of the main reasons for the rise in inflation is that the total amount of money in the country rises faster than the quantity of goods to be sold.
Another important reason is the shortage of raw materials, raw materials as natural goods and industrial derivatives.
