Option b; A person whose salary has increased is able to purchase fewer goods and services is best evidence that inflation has occurred.
A sustained increase in the general price level of goods and services is referred to as deflation, which is the opposite of inflation in economics. When the general price index level increases, each unit of currency buys fewer goods and services; as a result, inflation corresponds to a decrease in the purchasing power of money. The annualized percentage change in a general price index, or inflation rate, is a commonly used indicator of inflation. Because not all prices rise at the same rate, the consumer price index (CPI) is frequently employed. In the US, wages are also calculated using the employment cost index.
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