Inflation rate


Also found in: Dictionary, Thesaurus, Wikipedia.

Inflation Rate

A measure of how fast a currency loses its value. That is, the inflation rate measures how fast prices for goods and services rise over time, or how much less one unit of currency buys now compared to one unit of currency at a given time in the past. The inflation rate may increase due to massive printing of money, which increases supply in the economy and thus reduces demand. Equally, it may occur because certain important commodities become rarer and thus more expensive. Central banks attempt to control the inflation rate by increasing and decreasing the money supply. The inflation rate is important to fixed-income securities, as the returns on these securities may not keep up with inflation, and thus result in a net loss for the investor. See also: CPI, Deflation.

Inflation rate.

The inflation rate is a measure of changing prices, typically calculated on a month-to-month and year-to-year basis and expressed as a percentage.

For example, each month the Bureau of Labor Statistics calculates the inflation rate that affects average urban US consumers, based on the prices for about 80,000 widely used goods and services. That figure is reported as the Consumer Price Index (CPI).

References in periodicals archive ?
The last time the inflation rate was below 10 percent was for a few months in 2009 and 2010.
The inflation rate during the first quarter of 2015 was influenced by rise in rents and water and electricity prices.
The models based on the other two trend inflation estimates yield forecasts that are relatively flat around the recent estimate of the trend rate, with the forecasted inflation rate from the model with the smoother trend (using the third measure) a bit higher than the forecasted rate from the model with the most variable trend (using the second measure).
Inflation rate increased slightly in December and reached 25.
According to official data released by the UAE National Bureau of Statistics, the country's year-on-year inflation rate rose to 3.
He noted that Iran's point-to-point inflation rate for the month ending October 22 was 14.
According to the State-run Agency for Statistics, back in 2013 the inflation rate stood at 4.
He added that he will announce the new inflation rate next week.
The ECB has vowed to fight the persistently low inflation rate but has so far refrained from bolder counter-measures such as large-scale asset purchases.
The apex bank said that the inflation rate for the 12-month period that ended on the last day of the Iranian calendar month of Tir (July 22) was 25.
The Rouhani administration has envisaged a 25-percent inflation rate for the current Persian calendar year (ending March 2015).
On the other hand, the report pointed out that the inflation rate recorded in the Sultanate in November 2013 was the lowest compared to other GCC States.