Inflation targeting

Inflation targeting is when a government sets a goal for how much the prices of goods and services should increase, or go up, over a certain period of time. The government wants to make sure that prices don't go up too fast, because that would reduce the value of people's money. So they set a target, or goal, for prices to go up a certain amount each month or each year. The government can then use different policies and programs to help keep prices at that level.