inflation
C1Formal, Academic, Business, Journalistic
Definition
Meaning
A sustained increase in the general level of prices for goods and services in an economy, resulting in a decline in the purchasing power of money.
1. (Economics) The rate at which this price increase occurs. 2. The act of inflating or state of being inflated, e.g., air inflation of a tyre. 3. (Inflation of something) Exaggerated or pretentious increase in the importance or reputation of something.
Linguistics
Semantic Notes
Primary meaning is economic; 'inflating' physical objects (tyres, balloons) uses the verb 'inflate' not the noun 'inflation' in everyday speech. The abstract sense (inflation of ego/importance) is metaphorical.
Dialectal Variation
British vs American Usage
Differences
Spelling identical. Usage identical in economic context. 'Tyre inflation' is more common in UK English, 'tire inflation' in US.
Connotations
Universally negative in economic context. The metaphorical sense (e.g., 'grade inflation') carries a critical connotation in both.
Frequency
High frequency in both varieties due to economic news. Slightly higher in UK English in phrases like 'inflation rate' (ONS) vs. US 'inflation rate' (BLS).
Vocabulary
Collocations
Grammar
Valency Patterns
[verb] + inflation: control, curb, reduce, cause, fuelinflation + [verb]: rises, falls, eases, acceleratesinflation + [prep]: in (inflation in energy prices), of (inflation of 5%)Vocabulary
Synonyms
Strong
Neutral
Weak
Vocabulary
Antonyms
Phrases
Idioms & Phrases
- “Cost-of-living crisis”
- “Inflationary spiral”
- “Inflation eats into savings”
- “Keep up with inflation”
Usage
Context Usage
Business
Headline inflation exceeded analysts' forecasts, impacting bond yields.
Academic
The study examines the long-run relationship between money supply growth and inflation.
Everyday
With this inflation, our weekly grocery shop costs so much more.
Technical
The central bank targets a 2% core inflation rate, excluding volatile food and energy prices.
Examples
By Part of Speech
verb
British English
- The government aims to inflate the economy carefully.
- He had to inflate the dinghy before setting sail.
American English
- The new policy could inflate prices further.
- We need to inflate the soccer ball for the game.
adverb
British English
- Prices are rising inflationarily.
- (Rare usage; typically 'at an inflationary rate')
American English
- Wages failed to keep up inflationarily.
- (Rare usage; 'in real terms' is more common)
adjective
British English
- Inflationary pressures are coming from the service sector.
- They received an inflation-linked pension increase.
American English
- Inflationary expectations are becoming unanchored.
- The contract includes an inflation-adjusted clause.
Examples
By CEFR Level
- Inflation makes things more expensive.
- Food prices go up with inflation.
- The inflation rate is 3% this year.
- High inflation is a problem for many people.
- The central bank raised interest rates to combat rising inflation.
- Salaries often fail to keep pace with inflation, reducing real income.
- Persistent core inflation, despite volatile energy prices easing, suggests embedded domestic price pressures.
- Quantitative easing undertaken post-crisis was criticised for its potentially inflationary long-term effects.
Learning
Memory Aids
Mnemonic
INFLATION is like a balloon IN FLIGHT - it gets bigger and bigger (prices rise), and your money can't keep up.
Conceptual Metaphor
INFLATION IS A FORCE (battle inflation, fight inflation), INFLATION IS A DISEASE (tackle the root causes of inflation), INFLATION IS HEAT (overheating economy, cooling inflation).
Watch out
Common Pitfalls
Translation Traps (for Russian speakers)
- Avoid using 'инфляция' for the physical act of inflating (use 'накачивание').
- Russian 'инфляция' is a direct loanword, but the collocations differ (e.g., 'борьба с инфляцией' = 'fight against inflation').
Common Mistakes
- Using 'inflaction' (misspelling).
- Confusing 'inflation' (ongoing process) with 'inflated' (adjective: high or exaggerated).
- Using 'inflation' for a single price hike instead of a general trend.
Practice
Quiz
What is the opposite of 'inflation' in economics?
FAQ
Frequently Asked Questions
Mild, stable inflation (around 2%) is considered normal and can encourage spending and investment. Hyperinflation or very high, volatile inflation is damaging.
Inflation is the rate of increase in prices across the economy. Cost of living is the actual amount of money required to maintain a certain standard of living, which is directly affected by inflation.
Yes, metaphorically. 'Grade inflation' refers to a trend of awarding increasingly higher grades over time. 'Ego inflation' means an exaggerated sense of self-importance.
Main theories: Demand-pull (too much money chasing too few goods), Cost-push (rising costs for producers, e.g., wages, materials), and Built-in inflation (expectations of future inflation lead to higher wages/prices).
Collections
Part of a collection
Economics Terms
B2 · 50 words · Key vocabulary for economics and financial systems.