What term describes a sustained rise in the general price level of goods and services?

The term that describes a sustained rise in the general price level of goods and services is inflation. Inflation occurs when there is an increase in the prices of various goods and services over time, which reflects a decrease in the purchasing power of money. This phenomenon can arise from various factors, including increased production costs, higher demand for products, or expansionary monetary policies that inject more money into the economy.

In contrast to this definition, deflation refers to a sustained decrease in the general price level, where the value of money increases, making goods and services cheaper over time. Stagflation is a situation characterized by stagnant economic growth, high unemployment, and high inflation occurring simultaneously, which complicates economic policy responses. Hyperinflation represents an extremely high and typically accelerating rate of inflation, often exceeding 50% per month, leading to a rapid loss of a currency's value. While each of these terms relates to economic conditions involving price changes, it is specifically inflation that accurately describes the scenario of a sustained rise in the general price level of goods and services.