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 ?
As the accompanying chart shows, the inflation rate calculated a different way--as a 12-month average--has remained fairly steady in those months around 15 percent.
The inflation rate during the first quarter of 2015 was influenced by rise in rents and water and electricity prices.
The recent pickup in three-month inflation rates suggests the possibility--admittedly, not very likely, with just a few months of data--that trend inflation rates have bottomed out and begun to move back toward rates consistent with the FOMC's 2-percent objective for PCE inflation.
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.
Depending on the inflation rate, a $100 payment today could be $102 or $120 in 15 years.
MANILA, March 5 Kyodo The Philippines' inflation rate in February slowed down to 9.
Asset prices are likely to continue to decline because the domestic banks will reduce loans and cash inflation rates in these countries will eventually necessitate increases in their interest rates; in turn spurring a further decline in asset prices.
If European societies were going to experience major social disruptions at such inflation rates, then why has the current U.
For the 1983-89 period as a whole, the very high, real long-term interest rates are somewhat exaggerated by extraordinarily high rates earlier in the period as the economy adjusted from the very high inflation rates of the early 1980s.
In a statement issued after the Turkish Statistical Authority, or TurkStat, announced inflation rates for March, the Central Bank said that consumer prices increased 0.