IDNLearn.com is your go-to resource for finding precise and accurate answers. Discover in-depth and trustworthy answers to all your questions from our experienced community members.

what is the relationship between purchasing power and inflation?

Sagot :

Inflation reduces the value of a currency's purchasing power, having the effect of an increase in prices. To measure purchasing power in the traditional economic sense, you would compare the price of a good or service against a price index such as the Consumer Price Index (CPI).