One clear sign that inflation is happening is a sustained increase in the prices of goods and services. When demand increases and supply cannot keep up, prices rise, which is a direct indicator of inflation

. Another early sign can be rising prices of key commodities such as copper, lumber, oil, and metals, which are major inputs in production; if these raw- material prices increase sharply, it often signals cost-push inflation

. Additionally, rising asset prices such as stocks, real estate, and commodities, without a corresponding increase in demand, can also be an early warning sign of inflation

. In summary, one key sign of inflation is:

• An increase in general prices of goods and services over time, reflecting reduced purchasing power of money. This can be observed through rising consumer prices, commodity prices, or asset prices

This price rise is often accompanied by other effects such as higher wages, increased interest rates, and rising home values, all reflecting inflationary pressures in the economy