INTERNAL MARKET, INDUSTRY, ENTREPRENEURSHIP AND SMES - Focus on inflation - Why do consumer prices change as they do?

Inflation is the rate of increase in price levels for goods and services In a market economy, prices for goods and services can always change. Some prices rise, some prices fall.

date: 08/07/2010

author: European Commission

By averaging these price changes we can calculate an overall inflation rate. We speak of inflation if there is an increase in prices for goods and services over time.

Focus on inflation - Why do consumer prices change as they do?

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