Ever wondered why the same cup of morning coffee costs more every year? The same coffee? From the exact same company? Well, that is because of an economics phenomenon known as Inflation . • What is Inflation? By definition, Inflation is a sustained, persistent increase in the general price level of goods and services in an economy over a period of time. In simple terms, Inflation is the rise in prices of good and services over time. When the prices of goods or services increa