Description
The inflation rate refers to the rate of increase in the average price level of goods and services, typically measured by the Consumer Price Index (CPI). It is calculated as the annual percentage change, providing insight into price fluctuations and changes in the purchasing power of money. An increase in the annual rate indicates rising overall price levels and decreasing purchasing power, known as inflation, while a negative growth rate is referred to as deflation. In 2022, global prices surged due to the COVID-19 pandemic and the Russia-Ukraine war. The International Monetary Fund (IMF) forecasts that global inflation is expected to gradually decline in the coming years.