Inflation is one of the worst blows for any economy. Inflation is primarily of two kinds- price inflation and monetary inflation. When the prices of goods and materials escalate beyond their general cost over a set period, it is defined as price inflation. Monetary inflation is defined as the rise in the quantity of money in an economy. Rising prices decrease investment nationally, and also lowers the international competitiveness. Inflation has been adversely affecting commoners and old people, since it decreases the value of their savings. As Ronald Reagan, the 40th president of USA says, “Inflation is as violent as a mugger, as frightening as an armed robber and as deadly as a hit man”.
All said and done, there are several advantages that inflation offers as well, like increased investment and a lower rate of economic recessions among others. Every consumer dreams of deflation, but it is practically impossible. It would result in a delay in consumerism and thus affect the growth of the economy. If inflation is moderate, people tend to adjust to the prices, and it also signifies a healthy economy. Read these famous rising prices quotations and sayings to learn more on inflation.