Inflation
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Economic Indicator
Inflation is often used as an economic indicator to gauge a country's economic health. Reports show inflation is on the rise, indicating an overheating economy.
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Not Always Negative
While inflation reduces purchasing power, moderate inflation is normal and can signal a growing economy. The government aims for moderate inflation to encourage spending.
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Central Bank Role
Central banks manage inflation by adjusting monetary policies such as interest rates. To curb inflation, the central bank may hike interest rates.