“Inflation rate” is an economic term that refers to changes in a price index. The inflation of a country is the rate of price increase over a set period of time. Most inflation figures are given for the yearly increase in the price index. Inflation affects the purchasing power of the population and affects the economy of a country in countless ways. With a rising inflation rate, a currency unit will purchase fewer goods, necessitating a rise in salaries and other economic changes.
Inflation may seem like a constant issue, but different parts of the world have very different inflation rates. Some countries have double-digit rates of inflation, or even higher rates. Other countries have little to no inflation.
Source : http://www.visualeconomics.com