what is the relationship between inflation and economic growth 
moderate inflation can be a sign of a healthy growing economy however high or volatile inflation can erode purchasing power create uncertainty and hinder economic growth by reducing consumer and investor confidence the bottom lineeconomic growth rate measures the percentage change in a country s economy often in gdp over a specific period it indicates whether an economy is expanding or contracting serving as a critical indicator of its performance factors like investment technological progress a skilled labor force entrepreneurship and sound economic policies influence economic growth rates 