Inflation is the process in which there is continous increase in the general price level and the money is continusly losing its value.Inflation is defined as"a persistent and appreciable rise in general level or average of prices".Inflation is also a continued upward movement in the general level of prices.

Deflation is just the opposite of inflation.If there is a rise in the general level of prices so that the value of money declines.It is named as inflation.Conversely,if the general level of prices fall and as a result,the value of money increases,it is called deflation.

Reflation is a situation of a modrately rising general prices when efforts are made by the government to lift the economy out of depression.In reflation the rising prices are accompanied if a fire's in output and employment.