finance

Inflation increases the prices of goods and services over time, which affects both businesses and everyday life. For businesses, higher inflation means increased costs for raw materials, salaries, transportation, and utilities. Many companies raise product prices to maintain profits, but this can reduce customer demand. For individuals, inflation decreases purchasing power, meaning people can buy fewer things with the same amount of money. Daily expenses such as food, fuel, electricity, rent, and healthcare become more expensive. Inflation can also impact: Savings value Investment decisions Loan interest rates Business expansion plans Consumer spending habits