Bloat, or inflation, refers to the general increase in prices of goods and services over time. This means that as inflation rises, the purchasing power of money decreases, making it more expensive for consumers to buy the same items. Inflation can be caused by various factors, including increased demand, higher production costs, or changes in monetary policy. Central banks, like the Federal Reserve, often monitor inflation closely to maintain economic stability. They may adjust interest rates to control inflation, aiming to keep it within a target range. Understanding inflation is crucial for individuals and businesses to make informed financial decisions.