A Closer Look at Inflation

By Kevin B. McLachlan

We’ve all experienced inflation as the prices of goods and services that we buy climb higher. And, depending on how long you’ve been around, you’ve likely seen the pace of price increases ebb and flow in the economy over time.

While some inflation is a normal part of life, it’s not the only related concern. Deflation occurs when overall price levels drop. Japan is a good example, having experienced bouts of deflation over the past few decades. Conversely, some economies can experience periods of extremely high inflation or hyperinflation. This is what’s happening right now in Venezuela where, according to the International Monetary Fund, inflation could hit 1,000,000 per cent (yes, one million per cent) in 2018.

Full Story