What is "inflation"? Give examples.

Inflation refers to the phenomenon that under the condition of currency circulation, the money supply is greater than the actual demand, that is, the actual purchasing power is greater than the output supply, which leads to the devaluation of the currency and the sustained and general rise of prices for a period of time. Its essence is that the total social demand is greater than the total social supply (demand is far greater than supply).

Unlike currency depreciation, overall inflation is the decline of currency value in a specific economy, while currency depreciation is the decline of relative value of currencies among economies. The former affects the value of money used in China, while the latter affects the value of money in the international market. The correlation between them is one of the disputes in economics. Inflated goods refer to "money".

Extended data:

It makes prices keep rising and the purchasing power of money keep declining, which leads to a sharp drop in the real wages of workers and an increasingly poor life. However, farmers and other small producers have to buy the means of subsistence produced by capitalist industries at high prices, and sell their agricultural products and handicrafts at low prices, because in the process of rising prices, the "scissors difference" between industrial and agricultural products is getting bigger and bigger, thus becoming poorer.

Inflation is bad for depositors. With the real increase in prices, the actual price or purchasing power of deposits will decrease, and those who have spare money in their pockets and deposits in the bank will be severely hit. Similarly, pensions, insurance premiums and other valuable property securities, which were originally used as preventive measures and providing for the elderly, will also decline in real value during the inflation period.

Baidu encyclopedia-inflation