An alteration in the general price level
accordingly means a change in the relation between goods on the one hand and money on the other.
A rapid increase in the procurement prices obviously will be translated into higher food prices and thus increase the general price level
p[S.sub.t] = [p.sub.t] - [E.sub.t-1 p.sub.t] (2) where [p.sub.t] denotes the logarithm of the general price level
at time t and [E.sub.t]-1[p.sub.t] the expectation of [p.sub.t] conditioned on information available at time t - 1.
As the general price level
stabilized, the prospective gains from holding these inventories fell further, causing more reductions in inventories resulting in another decline in demand.
They were also instrumental in keeping the general price level
from rising head and shoulder.
In the second quarter of 2016 the general price level
(measured by the Consumer Price Index - CPI) contracted at about the same rate (2%) as in the first quarter.
The long-run in our approach is defined as a period of time in which now factor prices also vary, along with the quantity of labor and the general price level
, while the capital stock and technology remain fixed.
It also may have reflected a lingering inflation psychology from the 1970s--that is, people may have expected a rapid increase in the general price level
and especially in the prices of specific real assets such as real estate properties that would make debt-finance purchases profitable.
Because the twelve cities account for only 20 percent of the population, it appears that WPI is probably a better indicator of movements in the general price level
On month on month basis however, November 2018 all items inflation was highest in Edo (2.18%), Nasarawa (1.46%), and Kwara (1.39%), while yobe (0.29%), Abia (0.28%) and jigawa (0.02%) had the least with Kogi recording negative inflation or price deflation (general decrease in the general price level
of goods and services or a negative inflation rate) in November 2018.
The upward revision resulted from a slower contraction of the general price level
in the final quarter of 2015 compared to the third quarter of 2015 and from the pickup of domestic demand.