askST: What is inflation, why is it rising now and how does it affect consumers?

A modest amount of inflation is seen as beneficial for most economies as it encourages consumption and investment. ST PHOTO: LIM YAOHUI
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SINGAPORE - Inflation refers to a general rise in the prices of goods and services without an improvement in their quality.

But it is important to understand the concept of inflation because prices rise and fall depending on demand and supply through the course of a year. In fact, if the economy is growing, the sum of these rises and falls in prices should result in moderate inflation.

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