Of the various ills the economy can face, inflation is
simultaneously the worst for society as a whole. Inflation can
be defined as the rate at which the general level of prices for
goods and services is rising, and, subsequently, purchasing
power is falling (investopedia.com). Inflation is a sustained
increase in the general level of prices. Since inflation is
concerned with increases in the general level of prices, changes
in the price of a single good or service cannot be characterized
as inflation. The inflation rate is normally measured by
percentage changes in the cost of a basket of consumer goods and
services (central bank). Inflation in Trinidad has been
fluctuating, as stated in the article Inflation rises to 5 per
cent, found in the Saturday Guardian on the 27th February, 2010.
The article gave the information given in the report done by the
Central Statistical Office; it stated that headline inflation
rose by 3.7 per cent in the 12 months to January 2010 from the
1.3 per cent a month earlier. Food