The concept of inflation and its’ essential role in the economy

Inflation is one of the key categories of economic theory. Its regulation helps to solve various social and economic problems, and its timely forecasting contributes to the optimal management of economic activities of the subjects. The correct assessment of the future rate of change in prices for goods and services to achieve success in the implementation of projects, determine the break-even point and find the optimal price of products, which will help maximize profits. In addition, accurate forecasting of the level of inflation helps to reduce the costs in the future, which increase during the crisis phenomena in economic systems. This article discusses the main theoretical principles of inflation in terms of theoretical provisions that can be used to predict the speed of price indices for future periods.