---
title: "What Is Inflation? A Sourced Beginner's Guide"
slug: what-is-inflation
category: business
category_label: "Business"
author: "BrainWavePost Staff"
date: 2026-06-07
tags: ["inflation", "economics", "basics", "cpi"]
read_time_minutes: 5
canonical_url: https://brainwavepost.com/article/what-is-inflation
source: BrainWavePost
---

# What Is Inflation? A Sourced Beginner's Guide

*Business · 2026-06-07 · BrainWavePost Staff · 5 min read*

> A short, fully sourced explainer on inflation using official definitions and data from the U.S. Bureau of Labor Statistics.

> **How this article is sourced** _(info)_
>
> Definitions and data come from the U.S. Bureau of Labor Statistics (BLS), the federal agency that calculates the Consumer Price Index (CPI). [1][2] This is general economic education, not investment advice.

The U.S. Bureau of Labor Statistics defines inflation as 'the overall general upward price movement of goods and services in an economy.' When inflation is present, each unit of currency buys fewer goods and services than it did previously. [1]

## How inflation is measured

The BLS measures inflation through the Consumer Price Index (CPI), which tracks the average change over time in the prices paid by urban consumers for a market basket of consumer goods and services. The CPI covers categories such as food, housing, apparel, transportation, medical care, and education. [2]

## The two main types of inflation

- Demand-pull inflation — occurs when aggregate demand in an economy outpaces aggregate supply. [1]
- Cost-push inflation — occurs when the costs of production increase (for example, raw materials or wages), leading producers to raise prices. [1]

## Why moderate inflation is normal

The BLS notes that a low, stable rate of inflation is generally considered normal in a growing economy. Central banks in many countries target a low positive inflation rate because it encourages spending and investment rather than hoarding cash. [1]

> **Where to check current U.S. inflation** _(tip)_
>
> The BLS publishes the latest CPI data monthly at bls.gov/cpi. [2]

## References (clickable)

- [1] U.S. Bureau of Labor Statistics — Consumer Price Index: https://www.bls.gov/cpi/questions-and-answers.htm
- [2] U.S. Bureau of Labor Statistics — CPI Latest Numbers: https://www.bls.gov/cpi/

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