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Header TD Economics Explains What is inflation
• Mar. 19, 2024

You’ve likely heard the word “inflation” a lot over the last few years. But what does it mean? And how does it affect your day-to-day life?

According to Derek Burleton, Vice-President and Deputy Chief Economist at TD, the general definition of inflation is an increase in the prices of goods and services. It typically occurs when the demand for goods and services exceeds the capacity of an economy to meet that demand.

“Since the pandemic in 2020, inflation has soared in Canada and other major economies, not quite to the double-digit levels of the 1980s, but to a range of between 8 to 10% -- levels that were simply unfathomable after three decades of inflation averaging around 2% a year,” Burleton says.

In this TD Economics video, Burleton explains what gives rise to inflation and how it affects the cost of living.

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