Inflation

1. It refers to the rise in the prices of most goods and services of daily or common use, such as food, clothing, housing etc.
2. A certain level of inflation is required in the economy to ensure that expenditure is promoted and hoarding money through savings is demotivated.
3. As the spending increases, the demand also increases which leads to inflation.
4. Hence, Economic growth is usually coupled with inflation.

Source: Sriram’s IAS