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 ?
Mismatch risk from Europe and Holland rates of inflation showed that there's a long-term co- integration relation between the Holland CPI and the consumer price indexes of countries that have acquainted inflation-linked certificates established on this inflation assessment.
In a study carried out by Cheung and Yuen (2002) fundamental interaction of prices and rates of inflation in the United States Singapore and Hong Kong were studied.
H1: There is Co-Integration between the rates of inflation of North Asia H2: There is Co-Integration between the rates of inflation of South Asia H3: There is Co-Integration between the rates of inflation of Middle East H4: There is Co-Integration between the rates of inflation of Africa
Were the Higher, Average, Second Sub-sample Interest Rates Wholly Traceable to Higher Average Rates of Inflation as Found by S&S in the U.
measured rates of inflation may have been biased estimates of the expected rates of inflation.
In France and Germany significantly lower rates of inflation were accompanied by nominal yields that exhibited no significant change in the third sub-sample.
On the whole, the expected rates of inflation do not differ greatly from the realized rates.
Underestimates of the rates of inflation (the expected rate is less than the rate that actually occurred) are shown in the shaded area.
Expected rates of inflation were more closely realized in this period.
Unlike other rates of inflation, zero inflation is a policy goal that will be understood by everyone.
It has strived to balance desirable economic conditions such as full employment, economic growth, and low long-term interest rates with low rates of inflation.
A positive consideration is that the rate increase limit under Proposition 1, which is indexed to rates of inflation and population growth, is in excess of what bond rate covenants may require and an existing automatic rate adjustment.