Inflationary Period

An inflationary period refers to a time when the general level of prices for goods and services rises, eroding purchasing power. During this time, each unit of currency buys fewer goods and services than before. This can happen due to increased demand, higher production costs, or expansive monetary policy by central banks. While moderate inflation is normal in a growing economy, high inflation can lead to uncertainty and decreased consumer confidence, affecting savings and investments. People may feel the impact in their daily lives as the cost of living rises faster than incomes.