The Impact of Inflation on the Pakistani Economy
A rise in prices that lowers a country's purchasing power is referred to as inflation. As long as the annual percentage stays low, inflation is a natural economic development; once the percentage exceeds a set threshold, it is referred to as an inflation crisis. The term "inflation" was previously used to describe increases in the money supply (monetary inflation), but as a result of economic discussions regarding the connection between the money supply and price levels, it is now mostly used to refer to price inflation. The loss of purchasing power in the medium of exchange, which is also the monetary unit of account, is another way to define inflation. Each unit of cash may purchase fewer products and services when the general price level increases. The general inflation rate, which is the percentage change in a general price index, typically the Consumer Price Index, over time, is one of the main indicators of general price-level inflation.