ETYM Latin inflatio: cf. French inflation.
1. A act of filling something with air.
2. A general and progressive increase in prices; SYN. rising prices.
In economics, a rise in the general level of prices. The many causes include cost-push inflation, which results from rising production costs. Demand-pull inflation occurs when overall demand exceeds supply. Suppressed inflation occurs in controlled economies and is reflected in rationing, shortages, and black-market prices. Hyperinflation is inflation of more than 50% in one month. Deflation, a fall in the general level of prices, is the reverse of inflation.