Editing Inflation (section)

== Terminology ==
The term originates from the Latin ''inflare'' (to blow into or inflate). Conceptually, inflation refers to the general trend of prices, not changes in any specific price. For example, if people choose to buy more cucumbers than tomatoes, cucumbers consequently become more expensive and tomatoes less expensive. These changes are not related to inflation; they reflect a shift in tastes. Inflation is related to the value of currency itself. When currency was linked with gold, if new gold deposits were found, the price of gold and the value of currency would fall, and consequently, prices of all other goods would become higher.<ref>{{cite web|url=https://www.vox.com/cards/inflation-definition-and-explanation/inflation-explanation|title=What is inflation? – Inflation, explained |date=July 25, 2014|work=Vox|access-date=September 13, 2014|archive-date=August 4, 2014|archive-url=https://web.archive.org/web/20140804103626/http://www.vox.com/cards/inflation-definition-and-explanation/inflation-explanation|url-status=live}}</ref>

===Classical economics===
By the nineteenth century, economists categorised three separate factors that cause a rise or fall in the price of goods: a change in the ''[[Value (economics)|value]]'' or production costs of the good, a change in the ''price of money'' which then was usually a fluctuation in the [[commodity]] price of the metallic content in the currency, and ''currency depreciation'' resulting from an increased supply of currency relative to the quantity of redeemable metal backing the currency. Following the proliferation of private [[banknote]] currency printed during the [[American Civil War]], the term "inflation" started to appear as a direct reference to the ''currency depreciation'' that occurred as the quantity of redeemable banknotes outstripped the quantity of metal available for their redemption. At that time, the term inflation referred to the [[devaluation]] of the currency, and not to a rise in the price of goods.<ref>{{cite journal|first=Michael F.|last=Bryan|url=https://www.clevelandfed.org/newsroom-and-events/publications/economic-commentary/economic-commentary-archives/1997-economic-commentaries/ec-19971015-on-the-origin-and-evolution-of-the-word-inflation.aspx|publisher=Federal Reserve Bank of Cleveland, Economic Commentary|date=October 15, 1997|title=On the Origin and Evolution of the Word 'Inflation'|journal=Economic Commentary|issue=October 15, 1997|access-date=May 22, 2017|archive-date=October 28, 2021|archive-url=https://web.archive.org/web/20211028064428/https://www.clevelandfed.org/newsroom-and-events/publications/economic-commentary/economic-commentary-archives/1997-economic-commentaries/ec-19971015-on-the-origin-and-evolution-of-the-word-inflation.aspx|url-status=live}}</ref> This relationship between the over-supply of banknotes and a resulting [[depreciation]] in their value was noted by earlier classical economists such as [[David Hume]] and [[David Ricardo]], who would go on to examine and debate what effect a currency devaluation has on the price of goods.<ref>{{Cite book |last=Blaug |first=Mark |url=https://books.google.com/books?id=4nd6alor2goC&dq=bullionist+inflation&pg=PA128 |title=Economic Theory in Retrospect |date=1997-03-27 |publisher=Cambridge University Press |isbn=978-0-521-57701-4 |pages=129 |language=en |quote=...this was the cause of inflation, or, to use the language of the day, 'the depreciation of banknotes.'}}</ref>

=== Related concepts ===
Other economic concepts related to inflation include: [[deflation]]{{snd}}a fall in the general price level;<ref>{{Cite news |last=Ashford |first=Kate |date=2023-11-16 |title=What Is Deflation? Why Is It Bad For The Economy? |url=https://www.forbes.com/advisor/investing/what-is-deflation/#:~:text=Deflation%20Definition,in%20prices%20across%20the%20economy.https://www.forbes.com/advisor/investing/what-is-deflation/#:~:text=Deflation%20Definition,in%20prices%20across%20the%20economy. |access-date=2024-01-30 |work=Forbes Advisor |language=en-US}}</ref> [[disinflation]]{{snd}}a decrease in the rate of inflation;<ref>{{Cite web |title=Disinflation: Definition, How It Works, Triggers, and Example |url=https://www.investopedia.com/terms/d/disinflation.asp |access-date=2024-01-30 |website=Investopedia |language=en}}</ref> [[hyperinflation]]{{snd}}an out-of-control inflationary spiral;<ref>{{Cite web |title=Hyperinflation |url=https://corporatefinanceinstitute.com/resources/economics/hyperinflation/ |access-date=2024-01-30 |website=Corporate Finance Institute |language=en-US}}</ref> [[stagflation]]{{snd}}a combination of inflation, slow economic growth and high unemployment;<ref>{{Cite web |title=What Is Stagflation, What Causes It, and Why Is It Bad? |url=https://www.investopedia.com/terms/s/stagflation.asp |access-date=2024-01-30 |website=Investopedia |language=en}}</ref> [[reflation]]{{snd}}an attempt to raise the general level of prices to counteract deflationary pressures;<ref>{{Cite web |title=What Is Reflation? |url=https://www.thebalancemoney.com/what-is-reflation-5210962 |access-date=2024-01-30 |website=The Balance |language=en}}</ref> [[asset price inflation]]{{snd}}a general rise in the prices of financial assets without a corresponding increase in the prices of goods or services;<ref>{{Cite web |title=Asset-Price Inflation vs. Economic Growth |url=https://www.investopedia.com/ask/answers/032715/what-difference-between-assetprice-inflation-and-economic-growth.asp |access-date=2024-01-30 |website=Investopedia |language=en}}</ref> and [[agflation]]{{snd}}an advanced increase in the [[Food inflation|price for food]] and industrial agricultural crops when compared with the general rise in prices.<ref>{{Cite web |title=Agflation: What It Means, How It Works, Impact |url=https://www.investopedia.com/terms/a/agflation.asp |access-date=2024-01-30 |website=Investopedia |language=en}}</ref>

More specific forms of inflation refer to sectors whose prices vary semi-independently from the general trend. "House price inflation" applies to changes in the [[house price index]]<ref>{{Cite web |title=UK House Price Index: November 2021 |url=https://www.gov.uk/government/statistics/uk-house-price-index-november-2021 |access-date=2023-11-19 |website=GOV.UK |language=en}}</ref> while "energy inflation" is dominated by the costs of oil and gas.<ref>{{Cite journal |last1=Rubene |first1=Ieva |last2=Koester |first2=Gerrit |date=2021-05-06 |title=Recent dynamics in energy inflation: the role of base effects and taxes|journal=ECB Economic Bulletin |issue=3 |url=https://www.ecb.europa.eu/pub/economic-bulletin/focus/2021/html/ecb.ebbox202103_04~0a0c8f0814.en.html |language=en}}</ref>