Inflation refers to the continuous rise in the overall cost of goods and services over time, typically assessed annually.
During inflation, the value of money diminishes, as each unit of currency can purchase less.
Central financial institutions and governments track inflation diligently due to its impact on living expenses, savings, and economic expansion.
Conversely, deflation signifies a sustained reduction in prices.
The terms ‘increase’ and ‘decrease’ are general and do not precisely define this economic event.
Consequently, the accurate response is option (A) Inflation.