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 ?
Meanwhile the Central Agency for Public Mobilisation and Statistics (CAPMAS) said that December 2017 has witnessed a decline in the annual inflation rate of about 4.
According to the calculation compared with the same month a year earlier, Iran's inflation rate bottomed out at 6.
The inflation rate during the first quarter of 2015 was influenced by rise in rents and water and electricity prices.
The CBoS attributed the decline in inflation rate to the decrease in the average price of some components of the food and drinks group which amounts to 52.
from those produced abroad, the low inflation rate of CPI goods prices seems to be partly due to low inflation rates for the prices of imported goods: the inflation rates of separate BLS indexes of import prices are very low.
Petrol and diesel prices largely contributed to the UK consumer price inflation rate, along with clothing and footwear.
Inflation figures will follow a fluctuating trend in the rest of 2010 and we expect the inflation rates to drop in the last quarter of 2010, the Central Bank said.
By the end of this year Macedonia is going to face deflation, according to the latest projections of the National Bank, being in downright discrepancy with those of the Government, according to which Macedonia should end this year with an inflation rate of 0.
The French employers' confederation MEDEF again took aim at the European Central Bank on 17 October for its inflation rate policy.
The function for estimating the non-accelerating inflation rate of unemployment (NAIRU) has been incorrectly formulated.
IRELAND had the highest inflation rate in the eurozone last month, according to figures released yesterday by the EU.