Price Stability

Price stability refers to a situation where prices for goods and services do not fluctuate wildly over time, meaning inflation (the increase in prices) is low and predictable. This stability helps consumers and businesses plan their budgets and investments with confidence, as they know the value of money won't change drastically. Central banks often aim for a specific inflation rate to maintain price stability, fostering economic growth and reducing uncertainty in the economy. In essence, price stability is important for a healthy economy, as it supports both spending and saving.