creeping inflation

Creeping Inflation

Low, persistent inflation over time. Creeping inflation generally is not noticed at first, but nevertheless reduces the value of a currency significantly. For example, if the inflation rate is 3%, prices will double in only 33 years.

creeping inflation

small increases in the general level of prices in an economy.


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The effect of the strong US dollar on offshore operations and creeping inflation, in the form of higher labour costs, have also taken a toll, one that some strategists think is too pronounced.
Yellen made clear that despite a steadily improving job market and signs of creeping inflation, the Fed sees no need to raise short-term interest rates from record lows anytime soon.
The generally more optimistic feeling about the global economy combined with the low interest rate and creeping inflation environment, amongst other issues, is driving an increasing number of people to consider increasing their holdings of higher risk-higher return investments to maximise their wealth in 2014," said Green.
Creeping inflation pressures are visible arising from rising food and fuel prices, the latter in large part due to exchange rate depreciation.
A prominent Saudi economist has warned against creeping inflation in the country, saying its continuation would have dire consequences on the economy in the long run.
The AIC's Annabel Brodie-Smith said: "With volatile markets, a eurozone debt crisis, creeping inflation, fears of a double-dip recession and rising unemployment figures, it's a worrying time for investors and the general public alike.
Two weeks ago, the Bank of Namibia opted to keep interest rates on hold despite creeping inflation, and this week, leading South African analysts changed their interest rate view to "lower for longer.
He discussed the current problems of the unusually high unemployment rate, which appears to be immune to any stimulus and the growing problem of creeping inflation.
amp;nbsp; The signs of creeping inflation and speculative activity in the property markets are clearly higher than the authorities' comfort level.
However, she warned that low interest rates alone were not enough, especially as the threat of creeping inflation could force rises in the medium term.
It also raises serious questions about the MPC's judgment over recent months, when their concern over creeping inflation appears to have blinkered them to the scale of the downturn.
Historically nothing undermines public confidence in the currency, the banks, politicians and the existing market ideology as much as daily creeping inflation.