Inflation

Inflation refers to the general increase in prices of goods and services over a period of time, leading to a decrease in the purchasing power of money. It is expressed as a percentage using indices such as the Consumer Price Index (CPI) or the Producer Price Index (PPI) as a benchmark. Inflation affects a broad range of economic activities and has a direct impact on the quality of life for citizens. It impacts their cost of living, the real value of wages and savings as well as interest rate levels for financial lending products.

Voters may assess the competence of political leaders and parties based on their ability to manage inflation effectively, such as proposing policies aimed at controlling inflation without stifling economic growth. Voters may also consider how policies aimed to address the root causes of inflation and their strategies for managing its impacts on different socio-economic groups.