Inflation means the hike in the cost of goods and services in a particular economy over time. For instance, what you could buy with ₹1,000 in 1985 took approximately ₹13,000 in 2021. This decrease in purchasing power is called inflation. Inflation is a significant economic factor that impacts various sectors such as food, fuel, and housing. In terms of the financial sector, inflation leads to higher interest rates, especially for housing loans.

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