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.
Farlex Financial Dictionary. © 2012 Farlex, Inc. All Rights Reserved

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).

Dictionary of Financial Terms. Copyright © 2008 Lightbulb Press, Inc. All Rights Reserved.
References in periodicals archive ?
In the EU the average annual inflation rate was 1.4 percent and in the euro area 1 percent in July.
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NAN reports that base effect relates to inflation in the corresponding period of the previous year; if the inflation rate was too low in the corresponding period of the previous year, even a smaller rise in the Price Index will arithmetically give a high rate of inflation now.
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 4.4% compared to December 2016.
When compared to the inflation rate a year previously, the inflation rate bottomed out two months ago (in Khordad, ending June 20) at 6.8 percent and has since risen steeply to 8.1 percent in Tir (ending July 21) and then to 9.4 percent in Mordad (ending August 21).
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 52.9% of the total consumer spending in spite of the price increase of the other goods and services groups which amounts to 47.1% of the total consumer spending.
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.