Inflation dynamics refer to the processes that determine how inflation evolves over time. Factors such as demand, supply, and monetary policy play crucial roles in influencing inflation rates. Central banks monitor these dynamics to maintain price stability and support economic growth. Understanding inflation dynamics is essential for policymakers and economists. By analyzing trends and patterns, they can make informed decisions to mitigate the adverse effects of inflation on the economy. This includes adjusting interest rates and implementing fiscal measures to ensure a balanced economic environment.