Inflation is understood as an ongoing loss of purchasing power of money, which is accompanied by an increase in the prices of goods and services. This means that in the future, you can afford less with the same amount of money as today. Therefore, inflation is influenced by increasing money supply, increased demand, and lack of supply. In the European Monetary Area, the European Central Bank (ECB) is responsible for keeping inflation in check. The opposite of inflation is deflation. Here, the price level generally falls.
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