Inflation

Inflation is the rate of increase in the prices of goods and services in an economy over a specified time period. Stable and moderate levels of inflation are a natural part of a healthy, expanding economy. Inflation that is too high, too low, or deflationary typically reflects imbalances in the economy that can cause longer-term economic instability and hardship for people, businesses, and communities.

As part of the Federal Reserve’s dual mandate to promote maximum employment and price stability, inflation is a major area of ongoing research at the SF Fed. This page features a collection of content on inflation, including topics such as goods inflation, services inflation, housing inflation, and inflation expectations.

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Labor Markets, Inflation, and the Economy

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