Price Inflation

Definition ∞ Price inflation represents the rate at which the general level of prices for goods and services is rising, and subsequently, the purchasing power of currency is falling. This economic phenomenon is typically measured by indices such as the Consumer Price Index (CPI). It reflects a decrease in the real value of money over time.
Context ∞ In crypto news, price inflation in traditional fiat currencies is often cited as a catalyst for increased interest in digital assets, particularly Bitcoin, as a potential hedge or store of value. Reports frequently compare the inflationary properties of fiat systems with the fixed or predictable supply schedules of many cryptocurrencies. The impact of macroeconomic inflation on digital asset valuations remains a continuous topic of discussion.