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Mark Shupe's avatar

Yet, rising prices and inflation are not the same thing, are they? Don't prices rise or fall for many reasons, including inflation?

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Rodrigo Jimenez's avatar

Great question; rising prices and inflation aren’t always the same. Prices can go up for lots of reasons (like weather or supply issues), but inflation is when prices rise broadly across the whole economy. CPI helps us spot that bigger trend.

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Mark Shupe's avatar

Thank you - and I believe widespread price increases are evidence of inflation, but they are the effect. In that example the cause could very well be inflation, which is monetary debasememt.

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