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Inflation as a problem of Ukrainian economy
(2014) Kopiika, Tania; Bozhok, Natalia
Inflation is the rate at which the general level of prices for goods and services is rising, and, subsequently, purchasing power is falling. Inflation is a problem because it devalues the money that's in circulation. The monetary unit has less buying power, leading to the rise of costs which further increases the cost of living. This increase is usually not matched by annual increases in wage. Most countries central banks will try to sustain an inflation rate of 2-3%.