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TeachMeFinance.com - explain Inflation inflation -- Growth in a general measure of prices, usually expressed as an annual rate of change. another definition... Inflation -- A rate of increase in the general price level of all goods and services. (This should not be confused with increases in the prices of specific goods relative to the prices of other goods.) another definition... Inflation -- the number of dollars in circulation exceeds the amount of goods and services available for purchase; inflation results in a decrease in the dollar's value. another definition... inflation -- an economic condition marked by a decrease in the purchasing power of the dollar and a general rise in prices. another definition... Inflation -- Loss of purchasing power of money caused by growth of the amount of money in circulation and reflected in a rise in prices without a proportionate increase in value of the things purchased.. About the author Mark McCracken Author: Mark McCracken is a corporate trainer and author living in Higashi Osaka, Japan. He is the author of thousands of online articles as well as the Business English textbook, "25 Business Skills in English". Copyright © 2005 by Mark McCracken, All Rights Reserved. TeachMeFinance.com is an informational website, and should not be used as a substitute for professional financial or legal advice. TeachMeFinance.com and its owner recommend consultation with a professional financial advisor prior to any investment or financial decision. Please read our disclaimer.