What is Inflation?
What is inflation? It’s a question that you hear a lot nowadays. You hear it on the TV, see it in the price of everything you buy, and it steals from your savings.
Inflation is an economic concept that refers to the sustained increase in the general price level of goods and services in an economy over a certain period. It is commonly measured by the Consumer Price Index (CPI) or the Producer Price Index (PPI). Inflation is essentially a decrease in the purchasing power of a given currency, meaning that each unit of currency buys fewer goods and services. See our chart below to see just how much more fiat currency you need to buy a house, car or pay the rent over the last century until today.
Perry Stevens is the founder of BIGPriceDrops and a long-time digital marketer with a practical interest in helping UK shoppers find better value online. He focuses on clear, no-nonsense money-saving content, Amazon UK deal insights, and buyer guides that help readers spot genuine savings without falling for misleading discounts or impulse-buy traps.
When he is not working on BIGPriceDrops, Perry runs Blend Local Search Marketing and works on digital projects covering SEO, AI tools, and online business growth. His approach is simple: help people make smarter decisions before they spend their money.