According to Webster`s New Universal Unabridged Dictionary published in 1983 the second definition of "inflation" after "the act of inflating or the condition of being inflated" is:
"An increase in the amount of currency in circulation, resulting in a relatively sharp and sudden fall in its value and rise in prices: it may be caused by an increase in the volume of paper money issued or of gold mined, or a relative increase in expenditures as when the supply of goods fails to meet the demand.
This definition includes some of the basic economics of inflation and would seem to indicate that inflation is not defined as the increase in prices but as the increase in the supply of money that causes the increase in prices i.e. inflation is a cause rather than an effect.
However, The American Heritage® Dictionary of the English Language, Fourth Edition, Copyright © 2000 Published by Houghton Mifflin Company says:
2) A persistent increase in the level of consumer prices or a persistent decline in the purchasing power of money, caused by an increase in available currency and credit beyond the proportion of available goods and services.
Personally, I think "Inflation" is the result of "paying what is asked" without the consideration of "true value" relative to income, i.e., indiscrimate spending! Both on the individual and national level. What are your thoughts?
Then you have the intrinsic value of money to consider. Take a look at the cost of "basic" foods? The price of fruit and vegetables is crazy. Why? It`s more readily avilable today than ever (forget the assortment). The most basic "staples" are out of line. I think it`s mainly do to simply saying HERE`S MY MONEY? What do you think? Don`t WE set the standard by not watching our P`s & Q`s?
Is the saying: "We make the worst mistakes during the best of times" true? I think so. Especially when we have CASH burning a hole in our pockets.