What do you mean by inflation?

Business & Management
#1

Inflation is defined as the pace at which a currency’s value falls and, as a result, the overall level of prices for goods and services rises. Demand-Pull inflation, Cost-Push inflation, and Built-In inflation are three forms of inflation that are occasionally used to classify it. The Consumer Price Index (CPI) and the Wholesale Price Index (WPI) are the two most often used inflation indices (WPI). Depending on one’s perspective and pace of change, inflation can be perceived favorably or unfavorably. Those possessing physical assets, such as real estate or stockpiled goods, may benefit from inflation since it increases the value of their holdings. People who retain cash may dislike inflation since it reduces the worth of their cash.

#2

Inflation means the same amount of money can buy less stuff. Your currency has lost value because prices have increased

supply=demand, price is same and hence the inflation
supply > demand, price reduces and hence the inflation
supply < demand, price increases and hence the inflation

Remember there are too many parameters which can influence supply and demand and they are different for each good and each service.