Inflation is something that affects each and every single country in the world. Almost all of us must have heard the very word inflation in recent time due to the ill effect of the particular thing. If you try to find out ht exact meaning of the word inflation, you will see that different people have different opinion on this particular subject.
The government of a particular thing carries out research to investigate and find out the prices of various things, ranging from food, daily essential items, petrol, cars, house, etc, in a country within a particular time period. From this the government calculates the inflation and the inflation rate.
If the inflation rises up all of a sudden, then it points to the increasing price of things in country. Depending on the inflation rate, the government adopts special measures to bring down the inflation rate.
The higher inflation rate means that the average price of things have gone up thereby making it quite difficult for the normal man to survive.