inflation
Inflation is a rate of a sustained increase in prices for goods and services.
When the price level rises, each unit of currency buys fewer goods and services. A chief measure of price inflation is the inflation rate, the annualized percentage change in a general price index (normally the consumer price index) over time.
Inflation has both positive and negative effects on an economy.
Increase in the opportunity cost of holding money, uncertainty over future inflation which may discourage investment and savings are considered negative effects. If inflation were rapid enough, shortages of goods happen as consumers begin hoarding out of a fear that prices will increase in the future.
Positive effects include ensuring that central banks can adjust real interest rates (to mitigate recessions), and encouraging investment in non-monetary capital projects.
Deflation, stagflation and hyperinflation are considered variables on inflation. Deflation is a decrease in prices, the opposite of inflation; stagflation is the combination of high unemployment and economic stagnation with inflation; and hyperinflation is an extremely rapid inflation.
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205
Analytics & Forecasts
What is Bond yield and how we use that with Fundamental
28 April 2022 #inflation, Interest Rate
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80
Analytics & Forecasts
Fed should wait for stronger inflation before raising
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- 98 Analytics & Forecasts Higher Inflation Lifts Sterling, Yen Stabilizes
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100
Other
8 Things Everyone Ought To Know About Inflation
8 April 2016 #inflation
- 80 Market News Rising U.S. inflation would take a bite out of the
- 115 Analytics & Forecasts Watch for key inflation updates from Japan, US this
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806
Events
Weekly economic outlook Nov 16-20
16 November 2015 #inflation, economic calendar
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745
Analytics & Forecasts
Economists support Bank of England's view there are no
21 October 2015 #inflation, Mark Carney
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1 384
Currency
Euro hits ten-day low vs greenback, ECB meeting on tap
19 October 2015 #forex news, usd/jpy
- 790 Analytics & Forecasts Peter Schiff: Inflation is not the Holy Grail of
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- 806 Events Eurozone inflation turns negative, spurs further talk
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851
Currency
Euro drops as German inflation rate turns negative
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