Slow-Roll Inflation

Slow-roll inflation refers to a gradual increase in prices across the economy, typically at a rate considered below average but still consistent over time. It contrasts with rapid inflation, where prices surge sharply. This slower pace can signal moderate economic growth, where demand for goods and services increases without overwhelming supply. While it can have benefits, like allowing consumers time to adjust budgets, prolonged slow-roll inflation can erode purchasing power if wages don’t keep pace. Understanding this helps individuals and businesses anticipate changes in the economy and make informed financial decisions.