What is Recession and inflation ?

A recession is when the economy stops growing and goes into reverse. Instead of adding new jobs, there are fewer jobs. Instead of companies making more money than the year before, they make less. Consumers spend less because more of them are out of work. Companies sell even less stuff, make less money and around it goes.

Usually, recessions correct themselves when interest rates go down. Rates go down when there's less demand for borrowing, which is what happens in a recession. Consumers use their credit cards less and businesses don’t need to borrow to build a new plant or open a new office to meet new demand. With lower demand for loans, lenders lower interest rates. Think of it as cutting the price of money and having a big sale

Inflation is a different animal — it’s an increase in prices. There are several causes, but it typically happens when an economy gets going too fast. Everyone is so flush with cash (or credit) that consumers spend freely and businesses expand rapidly. When they do, they’re competing for the same goods and labor. If supplies are limited — and demand stays strong — prices go up.
That’s what happened with home prices. More and more people were able to borrow, so there were more buyers able to spend more for each residence. Strong demand is also driving up the price of oil. Every economy in the world needs more and more of it to grow, but oil companies aren’t finding new oil fast enough to keep up. Food prices worldwide are also rising as more crops are diverted to making biofuels like ethanol and biodiesel. A shortage of workers with certain skills means companies have to pay more to find them and keep them.