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 ?
Over the next 12 months, the rate of inflation was essentially unchanged, and actually rose to 15.
The dip in the CPI rate of inflation will continue the downward trend experienced in recent months and matches forecasts by the Bank of England, which predicted that the rise in cost of living would ease throughout 2012.
Asked about the current rate of inflation, the typical response was 4.
Abu Dhabi'sAamonthly rate of inflation has fallen to 0.
India's annual rate of inflation turned negative for the week ended June 6 for the first time since the new wholesale price index (WPI) series started in 1995.
The group said the rise was nearly four times the rate of inflation during the same period, which was 106%, leaving children today better off in real terms than the previous generation.
FOOD prices have risen by double the rate of inflation over the past two years, latest figures reveal.
Italian consumers were apparently aware that the rate of inflation is increasing.
The growth in Venezuela's rate of inflation is estimated by the International Monetary Fund (IMF) to be 21.
Water bills across the Midlands are set to rise by more than double the rate of inflation.
Using IMF statistics as a basis, Market: Africa Mid-East predicts that the rate of inflation for 2006 will be 11.
Agence France-Presse (AFP) reported on November 17, 2005 that for the 10 months of 2005 growth in the rate of inflation was only 2.