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Inflation is the rise in prices of goods and services sold to consumers. It is a common phenomenon in the economic world and can have various causes, such as increased production costs, supply and demand imbalances, or changes in government policies.

Inflation in the retail sector can have significant implications for consumers and businesses alike. When prices rise, consumers find themselves paying more for products they were previously able to purchase at lower prices. As a result, their purchasing power is diminished, potentially impacting their loyalty to particular brands or products. In response to increased costs, businesses may find it necessary to raise their prices in order to preserve profit margins. This delicate balancing act becomes crucial for businesses striving to maintain profitability while navigating the challenges posed by inflation.