In the context of economics, inflation signifies an overall increase in prices. Central banks attempt to limit inflation, and avoid deflation, to keep the economy running smoothly. Inflation is often expressed as an annual percentage increase. A consistent rise in prices means that the purchasing power of currency diminishes, thus impacting consumer behavior and economic planning. In the context of cryptocurrencies, inflation can also refer to the inflation rate of a cryptocurrency, which affects its supply and, subsequently, its price.