What is inflation and its causes

Inflation is a process in which there is continuous increase in the general price level and the money is continuously losing its value. In the words of Gardner Ackley, “Inflation may be defined as a persistent and appreciable rise in general level or average of prices”. It may here be noted that rising general level of prices does not mean that prices of all goods are necessarily rising. Even during inflation, the prices of some goods may remain relatively constant and a few others actually falling.