[2026] PTE Academic Listening - Fill in the Blanks (Type In)

Inflation is an economic concept that describes the general increase in prices over time. While a moderate level of inflation is often viewed as a sign of a economy, hyperinflation can lead to severe instability. Central banks typically use interest rates as a primary to control the money supply and manage price levels. When the cost of production increases, businesses often pass these on to consumers to maintain profit margins. This phenomenon, known as cost-push inflation, can significantly reduce the power of a household's income. Economists also monitor the consumer price index to track changes in the patterns of a typical family. Maintaining price is crucial for long-term economic growth and social welfare.