Inflation is when the general price level of goods and services in an economy increases over time. It means that the purchasing power of money decreases, as you need more money to buy the same items. Moderate inflation can be a sign of a healthy, growing economy, but very high inflation or deflation (prices going down) can be problematic, as it affects people's spending, savings, investments, and overall economic stability.
Imagine you are a renowned economist. Briefly explain the concept of inflation and its impact on an economy.