inflation

Definition

A sustained increase in the general price level of goods and services in an economy over time, reducing the purchasing power of money. Measured typically as a percentage rise year-over-year.

Example Usage

With inflation at 5%, your savings lose purchasing power unless invested wisely.

Origin

From Latin 'inflare' (to blow into), used in economics since the 18th century to describe the expansion of currency supply.

Fun Fact

Hyperinflation—extreme, rapid inflation—can make currency nearly worthless; Zimbabwe experienced this in 2008 when prices doubled every few days.

Source: Definition backfill (hailey)

Related Terms

Intermediate

stress testing

Modeling how a portfolio or institution would perform under adverse scenarios like market crashes or economic meltdowns. Like a financial fire drill, except the fire is hypothetical and the panic is very real.

💰 Finance / Accounting

Intermediate

indebtedness

The state of owing money to someone else, quantified in dollars and anxiety, often measured both as a total amount and as a perpetual source of stress. In finance and accounting, it's a cold, hard number on a balance sheet; in real life, it's the reason you check your bank account with one eye closed. Whether it's student loans, mortgages, or credit cards, it's the gift that keeps on taking.

💰 Finance / Accounting

Intermediate

accrued

That magical moment when money you didn't physically touch suddenly becomes yours through the relentless passage of time. It's accounting's way of saying 'patience pays,' except the IRS gets a cut. When interest, rent, or other financial obligations accumulate on your books without you writing a check yet, they're accruing—basically financial ghosts haunting your balance sheet until settlement day arrives.

💰 Finance / Accounting

Intermediate

days sales outstanding

The average number of days it takes to collect payment after a sale, abbreviated as DSO. It measures how long customers ignore your invoices before grudgingly paying—lower is better unless you enjoy running a free lending operation.

💰 Finance / Accounting

Advanced

hedge accounting

An accounting treatment that matches the timing of gains and losses on hedging instruments with the hedged items, preventing volatility from making your financials look bipolar. IFRS 9 and ASC 815's way of acknowledging that risk management shouldn't tank your earnings.

💰 Finance / Accounting

Advanced

liquidator

The professional hired to turn a dead company's corpse into cash for creditors. They're the financial undertakers who specialize in converting assets into cold, hard liquidity while disappointed shareholders watch.

💰 Finance / Accounting

Translate This Term

See “inflation” in Corporate Speak, Gen-Z Slang, Pirate Speak, and more.

Try the Translator

Share This Term

Post on X Share on Facebook Share on LinkedIn

Discover a Term

Advanced

pink mist

Grimly descriptive term for the aerosolized blood cloud created by a high-velocity impact or explosion hitting a human t...