What is Inflation in Retail? Explained

Inflation is the general increase in the prices of goods and services over time, leading to a decrease in the purchasing power of a currency. Inflation affects the cost of living and influences consumer behavior. Retailers must navigate the impact of inflation on production costs, pricing strategies, and overall business operations. Managing inflationary pressures involves adjusting pricing structures, optimizing supply chains, and implementing strategic measures to ensure continued profitability in the face of rising costs.