WJEC General Certificate of Secondary Education (GCSE) Business Studies Practice Test

Inflation is the sustained rise in the general price level of goods and services over time. When prices rise across many everyday items, money buys less than before, so the cost of living increases. Deflation would be prices falling, stagnation means slow or no economic growth (often with low or zero inflation), and recession is a period of economic decline. So the description given matches inflation.