A. Purchasing power
B. Border control
C. Election process
D. Judiciary
Inflation refers to the general increase in prices of goods and services over time. When inflation rises, people have to spend more money to buy the same items, which reduces the value of their income.
As a result, the purchasing power of consumers decreases because their money buys fewer goods and services than before. High inflation can therefore make everyday necessities like food, fuel, and housing more expensive for households.
Key detail about inflation and purchasing power:
- Inflation causes prices of goods and services to increase.
- It reduces the value of money over time.
- People can buy fewer goods with the same income.
- High inflation puts financial pressure on households.