# What is inflation?
#Inflation is a rise in prices across the economy over time.

It makes the #purchasing-power erode across the entire economy over time.

Gradual, low and stable inflation is okay - they want predictable prices so they can #plan. 

**#Hyperinflation** is inflation out of control where a unit of #currency destroys itself to tens of orders of magnitude.

Central banks do everything they can to avoid hyperinflation:
- banks, retirement funds etc become worthless

**#Deflation** sounds good but wages fall, so everything becomes more expensive.

Prices stay the same but you purchasing power is eroded just the same. 

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