What is the term for the rate at which the general level of prices for goods and services is rising?

The term for the rate at which the general level of prices for goods and services is rising is inflation rate. This economic indicator measures how much the average price of a basket of goods and services increases over a specific period, typically expressed as a percentage. When inflation occurs, it reflects a decrease in purchasing power as consumers need more money to purchase the same items they bought in the past.

In economic discussions, the inflation rate plays a crucial role in determining monetary policy, government spending, and personal finance decisions. Understanding this rate helps businesses and consumers adjust their expectations about future prices, wages, and economic growth. It is distinct from other concepts related to price changes, such as deflation, which signifies a general decrease in prices; cost of living index, which measures the relative cost of living in different areas; and price index, which is a measure used to track changes in price levels over time but does not itself indicate the rate of change.