I’m not sure if is the best place for this question, but it’s something I’ve only ever seen come up on this sub so hopefully it’s a good place for an answer.
Multiple times here I’ve seen people say that inflation is not a rise in prices. This is not how the word is normally defined or used, either by laypeople or economists.
What I’m trying to understand is where this idea comes from. Because clearly it’s coming from somewhere. Somewhere there must be people writing articles or having discussions where “inflation” is used in this specific way. A few times I’ve asked people where their definition comes from and been met by silence.
In: Economics
The rise in prices is how we measure inflation, the same way you would measure the consumption of a car by seeing how many kilometers you travelled with a full tank of gas.
The cause of the change in consumption is something external. For example you travelled on the highway , you travelled in the mountains , you raced the car in a race track etc.
The cause of inflation is something external, like a war , pandemic , bad economic choices by the government etc. . The measure of the inflation is the rise(or fall) of prices 🙂
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