The inflation rate is nothing more than the growth rate of the average price level, and it can be either positive or negative.

Question

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Inflation rate refers to the rate at which the general level of prices for goods and services is rising, and subsequently, purchasing power is falling. It can indeed be positive, indicating a rise in prices, or negative, which is often referred to as deflation, indicating a fall in prices.

The Inflation Rate Is Nothing More Than the Growth Rate