• Inflation is the rate at which the prices of goods and services rise.
  • Inflation is sometimes divided into three types: demand-pull inflation, cost-push inflation and embedded inflation.
  • The most commonly used inflation indices are the consumer price index and the wholesale price index.
  • Inflation can be viewed positively or negatively depending on the individual point of view and the speed of change.
  • Those who have tangible assets such as property or stocks of goods may want to see some inflation as it increases the value of their assets.