inflation

In economics, a rise in the general level of prices. The many causes include cost-push inflation, which results from rising production costs. Demand-pull inflation occurs when overall demand for goods exceeds the supply. Suppressed inflation occurs in controlled economies and is reflected in rationing, shortages, and black-market prices. Hyperinflation is inflation of more than 50% in one month. Deflation, a fall in the general level of prices, is the reverse of inflation.

In 1997 and 1998, the USA recorded its lowest two-year inflation rise in 34 years. The two years' increases were 1.7% followed by 0.1%. The increases were small because of a large drop in petrol and other petroleum prices. Energy costs in 1998 fell by 8.8%, the largest decline since 1986.