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In economics, the inflation rate is a measure of inflation, the rate of increase of a price index (for example, a consumer price index). The rate of decrease in the purchasing power of money is approximately equal.
It's used to calculate the real interest rate, as well as real increases in wages, and official measurements of this rate act as input variables to COLA adjustments and Inflation derivatives prices.
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Description of the rate
The rate is usually expressed in annualized terms, though the measurement periods are usually different from one year. Inflation rates are often given in seasonally adjusted terms, removing systematic quarter-to-quarter variation.
Definitions
- See also: price index
If P0 is the current average price level and P − 1 is the price level a year ago, the rate of inflation during the year might be measured as follows:
After the year the purchasing power of a unit of money is multiplied by a factor 1 / ( 1 + inflation rate ).
There are other ways of defining the inflation rate, such as logP0 − logP − 1 (using the natural log), again stated as a percentage. In this case after the year the purchasing power of a unit of money is multiplied by a factor e − inflation rate.
There are two general methods for calculating inflation rates - one is to use a base period, the other is to use 'chained' measurements. Chained measurements adjust not only the prices, but the contents of the market basket involved, with each price period. More common, however, is the base period reference. This can be seen from inflation reports from the 'relative weight' assigned to each component, and by looking at the technical notes to see what each item in an inflation basket represents and how it is calculated.
See also
- List of countries by inflation rate
- Measures of inflation
- Units of inflation
- Econometrics
- Interest rate
- Deflation
- Inflation
- Hyperinflation
External links
- Consumer Price Index Home Page Bureau of Labor Statistics, United States Department of Labor.
- US Inflation Calculator with Rates US Inflation Calculator and Rate Charts (1913-current).
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Czech December Inflation Rate Dips to 3.6%, Lowest in 15 Months (Bloomberg)Jan. 9 (Bloomberg) -- The Czech Republic’s inflation rate dropped to a 15-month low in December, pushed down by transport and food prices. The annual rate fell to 3.6 percent from 4.4 percent in the previous month, the Prague-based statistics office said on its Web site today.
Estonian Inflation Rate Fell to Lowest in 16 Months (Update1) (Bloomberg)Jan. 8 (Bloomberg) -- Estonia’s inflation rate fell to the lowest level in 16 months in December as the Baltic country’s recession crimped consumer demand and fuel prices fell.
Estonian Inflation Rate Fell to Lowest in 16 Months in December (Bloomberg)Jan. 8 (Bloomberg) -- Estonia’s inflation rate fell to the lowest level in 16 months in December as the Baltic country’s recession crimped consumer demand.
UPDATE 2-Seychelles inflation rate leaps to 61 percent (The Forex Market)VICTORIA, Jan 8 (Reuters) - Prices in Seychelles jumped 60.6 percent in November from a year earlier, leaving the luxury Indian Ocean tourist destination with the highest inflation rate in Africa outside Zimbabwe, data showed on Thursday.
Estonia December inflation rate falls to 7 pct (The Forex Market)TALLINN, Jan 8 (Reuters) - Estonian consumer prices fell for the second month in a row in December of 2008, putting the annual inflation rate at 7.0 percent, down from 8 percent the month before, data showed on Thursday.
European Inflation Rate Drops to Lowest in Two Years (Update2) (Bloomberg)Jan. 6 (Bloomberg) -- Europe’s inflation rate fell to the lowest in more than two years in December as oil prices plunged and consumer spending slumped, increasing the scope for the European Central Bank to reduce borrowing costs further.
Chile Monthly Inflation Rate Falls to 20-Year Low (Update1) (Bloomberg)Jan. 6 (Bloomberg) -- Chile’s monthly inflation rate fell to the lowest in at least 20 years in December, increasing the scope for the central bank to cut interest rates this week.
Inflation rate drops again, now at 5.91 percent (New Kerala)New Delhi, Jan 9 : India's annual rate of inflation continued its downward trend, falling further to 5.91 percent for the week ended Dec 27, from 6.38 percent the week before, official data released Friday said.
BSP admits room for further rate cuts Inflation rate drops to 8% in December (Manila Bulletin)The country’s inflation rate continued to decelerate to 8 percent in December from 9.9 percent in November as food and fuel prices slowed down.
DATA SNAP: OECD Inflation Rate Sharply Lower In Nov (The Forex Market)LONDON (Dow Jones)--Annual rates of inflation were sharply lower across the developed world in November as energy prices fell, the Organization for Economic Cooperation and Development showed Friday.
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10 35 Inflation Rate
Inflation rate - Wikipedia, the free encyclopediaIn economics, the inflation rate is a measure of inflation, the rate of increase of a price index (usually some form of consumer price index). Equivalently, the rate of decrease in ...
Inflation Rate Calculator- from InflationData.comCalculate the inflation rate in percent between any two different dates since 1914. Useful for adjusting prices to the inflation rate over periods other than those covered by the ...
Canadian economy onlineInflation rate November 2008 2.0 % Real GDP September 2008, % change 0.1 % Exports
Zimbabwe InflationIn February 2007, Zimbabwe’s inflation rate topped 50% per month, the minimum rate required to qualify as a hyperinflation (50% per month is equal to a 12,875% per year).
U.S. Inflation Rate ForecastU.S. Inflation Rate Forecast over Next Six Months ... U.S. Inflation Rate Forecast Year Over Year Change in Consumer Price Index Percent
inflation rate Definitioninflation rate - definition of inflation rate - The percentage increase in the price of goods and services, usually annually.
New Zimbabwe.com News :: The Zimbabwe News You TrustZimbabwe News: New Zimbabwe.com, Breaking News as it Happens
inflation rate - definition of inflation rate by the Free Online ... Thesaurus Legend: Synonyms Related Words Antonyms. Noun: 1. inflation rate - the rate of change of prices (as indicated by a price index) calculated on a monthly or annual basis
Current InflationInflation Rate in Percent for Jan 2000-Present. Our Inflation data (see table below) is calculated to two decimal places while the ...
