Inflation means:
Specific prices are rising, and relative prices are falling.
Both relative prices and average prices are rising.
Relative prices are rising, but it is not certain what is happening to average prices.
Average prices are rising, but it is not certain what is happening to relative prices.

The correct answer is 'Average prices are rising, but it is not certain what is happening to relative prices'.

Explanation:

Inflation is the overall increase in the prices of goods and services. It is a quantitative measure to understand the change in the prices. In general, inflation means average prices of goods and services are rising. It does not account for the relative prices so it is not certain what is happening to relative prices.

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