Inflation refers to the general increase in prices of goods and services over time. It is measured by the Consumer Price Index (CPI) which tracks changes in the prices of common consumer goods and services like food, housing, transportation, medical care, recreation, etc. High inflation reduces the purchasing power of money. So, with the same amount of money, people can buy fewer goods and services. This impacts businesses and consumers in multiple ways. For marketers, inflation directly impacts marketing budgets and strategies. Here’s a look at some of the key effects. Rising Media Costs During periods of high inflation, the costs of advertising and marketing channels tend to rise. … [Read more...]