Learn more about inflation, which refers to the sustained increase in general price level over a period of time, usually in a given year. Inflation rate is typially measured by the Consumer Price Index (CPI). Find out more about different causes of inflation, such as demand-pull inflation and cost-push inflation. Also, examine the positive and negative consequences of inflation on the individuals, firms and economies. By doing so, it will be crucial for governments to implement policies to maintain a low rate of inflation.