Definition of Inflation
The rate at which the general price level of goods and services increases over time, reducing purchasing power. Central banks monitor inflation closely, and high inflation typically leads to interest rate hikes.
At a glance
Term
Inflation
URL slug
inflation
Category
General
Short answer
The rate at which the general price level of goods and services increases over time, reducing purchasing power.
Deep dives
Full A–Z glossary
Example
Apply the definition: restate “Inflation” in one sentence tied to your next trade (symbol, direction, size, stop). If you cannot, re-read the definition above.
Common mistake
Common mistake: using “Inflation” as loose slang while your broker/platform specification defines it more narrowly.
Professional tip
Tip: bookmark this “Inflation” page and reopen it when reading broker specs so definitions stay consistent.
Practice tools:
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FAQ
The rate at which the general price level of goods and services increases over time, reducing purchasing power.
Knowing the precise definition of “Inflation” prevents platform and broker-spec mistakes—a common source of size and cost errors.
Common mistake: using “Inflation” as loose slang while your broker/platform specification defines it more narrowly.