inflation

American  

[in-fley-shuhn] / ɪnˈfleɪ ʃən /

noun

1. Economics. a persistent, substantial rise in the general level of prices related to an increase in the volume of money and resulting in the loss of value of currency (opposed to deflation).

2. the act of inflating.

3. the state of being inflated.

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inflation British  

/ ɪnˈfleɪʃən /

noun

1. the act of inflating or state of being inflated

2. economics a progressive increase in the general level of prices brought about by an expansion in demand or the money supply ( demand-pull inflation ) or by autonomous increases in costs ( cost-push inflation ) Compare deflation

3. informal the rate of increase of prices

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inflation Cultural  

1. A general increase in prices.

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Other Word Forms

• anti-inflation
  noun
• noninflation
  noun
• overinflation
  noun
• reinflation
  noun
• self-inflation
  noun

Etymology

Origin of inflation

First recorded in 1300–50; Middle English inflacio(u)n, from Latin inflātiōn-, stem of inflātiō, equivalent to inflāt(us), past participle of inflāre “to blow on or into, puff out” + -iō -ion; see inflate

Explanation

Think of inflation as expansion, usually from being filled with air, like a balloon. This also refers to rising prices. Think of a balloon puffing up, getting fuller and fuller — that's inflation. The word has a bunch of related meanings. We can say people a little too full of themselves are suffering from inflation: they are full of hot air. When the cost of living is ballooning, that's economic inflation. When the universe was born in the big bang, there was a huge inflation, as matter spread out, creating galaxies, stars, and planets.

Example Sentences

The Consumer Prices Index measure of inflation was 3.3% in the year to March, but the Bank of England warned it could increase still further this year following a "significant energy price shock".

From BBC • May 9, 2026

Back then, the Federal Reserve was aggressively hiking interest rates to combat a wave of inflation.

From MarketWatch • May 9, 2026

The war has also placed major economic strain on the country at a time of rising inflation and falling real wages exacerbated by Western sanctions.

From The Wall Street Journal • May 9, 2026

During the surge in postpandemic inflation, for example, the Fed and other central banks raised interest rates to prevent the economy from overheating, which could have led to even more inflation.

From Barron's • May 8, 2026

The stimulus would lead inevitably to inflation, he thought, but also to a boom in stock prices.

From "The Big Short" by Michael Lewis

Related Words

• boom
• expansion
• hike
• rise