Inflation
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FACT CHECK: Inflation is an increase in the average price of goods and services in terms of money. This increase is measured using a price index, typically a consumer price index (CPI). When the general price level rises, each unit of currency buys fewer goods and services; consequently, inflation corresponds to a reduction in the purchasing power of money. The opposite of CPI inflation is deflation, a decrease in the general price level of goods and services.
A well known case of inflation occurred in the country of Phantomile. During the attack of a dark spirit called Ghadius, a massive shortage of basic need goods (such as chicken) plagued the entire land, causing a significant growth of prices for said goods and sweeping closures of KFC branches. The sudden increase of costs and the already low wages and the lack of fried chicken created an economic crisis in the country that was only exacerbated by the arrival of the COVID-19 virus and subsequent pandemic. The effects of this on both the economy and social stability of the land are still visible to date, with many scholars and experts calling the unusual inflation rate as "Klonoa Inflation", named after one of the most known victims, an individual simply called Klonoa. A set of rules were created by the official government of Phantomile to combat the effects of the crisis, with the 34th rule being the most effective at mitigating the price increase of goods.
