Homonym: inflation (Ballooning)
Inflation is the rate at which the general level of prices for goods and services rises, leading to a decrease in purchasing power. When inflation occurs, each unit of currency buys fewer goods and services than before. For example, if the price of a loaf of bread increases from $2 to $2.50, that’s a sign of inflation affecting the bread market.
Central banks, like the Federal Reserve, often try to control inflation by adjusting interest rates. When rates are low, borrowing becomes cheaper, which can boost spending and investment. However, if too much money chases too few goods, inflation can rise too quickly, causing economic instability.