inflationary fluctuations

Inflationary fluctuations refer to the rise and fall in the general price level of goods and services in an economy over time. When inflation occurs, money loses value, meaning you need more of it to buy the same items. This can be caused by increased demand for products, rising production costs, or changes in the money supply. Conversely, deflation occurs when prices fall, which can lead to reduced spending as consumers wait for lower prices. These fluctuations affect purchasing power, savings, and overall economic stability, influencing everyday life for individuals and businesses alike.