| A | B |
|---|
| Inflation | A consistent rise in the price of most goods - a rise in the average price level |
| Purchasing power | the quantity of goods and services that can be bought with a certain amount of money |
| Inflation rate | the percentage increase in the average price level |
| Deflation | a fall in the average price level |
| Disinflation | a fall in the average price level |
| Creeping Inflation | where the inflation rate is low - about 2-3% a year |
| Hyperinflation | where the inflation rate is very high - over 100% a year |
| Stagflation | where inflation and slow growth occur at the same time |
| Cost of living | the average price level. If the price index has increased, then it costs more to buy the goods and services you need to live |
