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 ?
The historical experience is that the rate of inflation rises on average by about three percentage points due to a depreciation in the value of the rupee by 10 percent.
Figures staying the same mean that the cost of living is broadly the same as it was a year earlier, although the ONS commented that if the rate of inflation was calculated to two decimal places, prices were 0.1% lower than a year previously, the first decline on record for the CPI measure.
But Labour shadow Treasury minister Catherine McKinnell said: "While this fall in the rate of inflation is welcome, the squeeze on working people continues.
It is further noted that 2013 is the first year since 1964 with a negative annual rate of inflation.
Although there are currently 861 standard savings accounts in the market, just one 'non-Isa' account and six cash Isas beat the current 2.4% rate of inflation.
David Cameron should tell these companies that they cannot keep putting their prices up above the rate of inflation.
The CPI rate of inflation hit a 31-month low in June after steadily declining from a peak of 5.2 per cent last September but unexpectedly rose to 2.6 per cent in July.
THE rate of inflation dropped to a 31-month low last month, official figures showed yesterday, as record rainfall forced clothing retailers to bring forward their summer sales.
| LONDON, July 17 (KUNA) -- The rate of inflation in the UK dropped to a 31-month low last month, official figures showed Tuesday, as record rainfall forced clothing retailers to bring forward their summer sales.
Although the consumer price index rate of inflation dropped from 3% to 2.8% in May, Hacker Young says the average Isa savings account rate pays only 2.6%.
THE rate of inflation hit a 15-month low in February, official figures showed, but failed to ease fears that high oil prices may prevent it falling as quickly as previously thought.
For Asia, Study between there is a significant one-way ASEAN+3, the EU and causal relationship, where the North America nominal and real exchange rates have a significant impact on the rate of inflation. Exchange Rate Depreciation has positive and long Depreciation and --run effect on exchange rate.