Inflation relates to the sustained rise, over a period of time, in the general price level when there is a rise in demand (for goods) without an equal rise in supply.
In today’s interconnected world, a lack of stability in the prices of goods and services characterises all types of economies, be it in an emerging economy like India or in an advanced economy like the United States or underdeveloped economy like that of Senegal. But as we all know, any kind of uncertainty is not good for business; so is the case with price instability.
If you wish to read a comprehensive article on inflation, check out The Explainer on Inflation I had written a few weeks ago on this blog.
Here's an infographic I sourced from Mint.com (as you can read from the infographic below) on the phenomenon of inflation and how it affects us all.Trust me this is easily one of the best infographics I have come across.