INFLATION IN AN UNSTABLE ECONOMIC SITUATION

Abstract

In the current political situation, inflation plays a major role in the country's economy. The article discusses types of inflation, factors influencing changes in the level of inflation and the consequences of rising inflation. The author comes to the conclusion that mainly the consequences of inflationary processes have a negative impact on the economic situation in the country, but in some cases there are also positive aspects. Manufacturers, thanks to the average increase in inflation, are trying to increase the volume of products or services supplied to the market. This increases the investment attractiveness of the region. But as soon as the inflation rate gets out of control, prices rise uncontrollably, which negatively affects the economic situation in the country. Therefore, it is necessary to develop measures to regulate inflation that would not lead to negative consequences.