Inflation is a rise in the general level of prices for goods and services in an economy over a period of time. It erodes the purchasing power of money and affects consumers' ability to afford essential items. When prices increase, people might have to cut back on their spending or search for cheaper alternatives. This can lead to reduced living standards and economic hardship for individuals and families. Additionally, inflation can have negative impacts on businesses, as it increases production costs and reduces profit margins. Therefore, it is crucial for governments and central banks to implement appropriate monetary policies to control inflation and maintain stable economic conditions.