Inflation is a quantitative measure of the rate at which the average price level of selected goods and services in an economy increases over a period of time. As it is characterized by an increase in the cost of living as the prices of goods and services rise, it also reduces the purchasing power of each unit of currency, demand, supply, and expectations. Inflation hits at every angle of the economy: food prices go up, transportation prices increases, gas prices rise, and the cost of various other foods and services skyrocket over time. Ideally, an optimum level of inflation is required to promote spending to a certain extent instead of saving, thereby nurturing economic growth.
Inflation & Specialization = Good Thing (Harry Dent)