Inflation rate


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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 bulletin explained that the inflation rate in Egypt's urban areas in February fell by 0.
The announced inflation rate between the two organizations has been different in recent months and the Statistical Center's inflation rate has been lower than that of the Central Bank.
The Trimmed Mean PCE inflation rate for the 12-month period ending in November was 1.
The Central Bank announced the inflation rates for the two measures it uses were 9.
Monetary aggregates have become most important sector over the last few years, specially, in order to control inflation rate and to enhance growth.
Rouhani has promised to decrease the inflation rate to five percent in the Iranian fiscal year of 1395 (to end on March 20, 2017).
The inflation rate during the first quarter of 2015 was influenced by rise in rents and water and electricity prices.
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.
Nobakht added that Iran's point-to-point inflation rate for the month was 13.
Earlier the country's Central Bank reported that the annual inflation rate as of the end of July stood at 7%.
The Eurostat agency says the core inflation rate - which excludes volatile food and fuel costs - remained unchanged on the month at 0.