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Inflation

Economy Term

What is Infaltion?

Inflation is constant and above average increase in general level of prices, usually attributed to rise in the volume of money.

When the volume of money rises but quantity of products and services remain unchanged or increase on the lower level, results are higher prices (Inflation) and the loss of value of currency.

Inflation is measured with CPI on the retail level and with PPI on the Wholesale level

The Consumer Price Index (CPI) is a measure of the average change in prices over time of goods and services purchased by households.

The CPIs are based on prices of food, clothing, shelter, and fuels, transportation fares, charges for doctors' and dentists' services, drugs, and other goods and services that people buy for day-to-day living.

Prices are collected each month in 87 urban areas across the country from about 4,000 housing units and approximately 25,000 retail establishments-department stores, supermarkets, hospitals, filling stations, and other types of stores and service establishments.



   
     
Related Economy Terms
                     
                     
 Advance monthly sales   CE-marked   Durable Goods  
 Affiliate   CFTC Commodity Futures Trading Commission   E-Commerce  
 Agents and Brokers   Civilian labor force   Employer Identification Number  
 ARPU   Constant Currency   Employment population ratio  
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 Balance on current account   Corporate Integrity Agreement   Euro Zone  
 Balance on goods and services   Deflation   European Monetary Union  
 Bonded Warehouses Manufacturing   Direct investment   Executive Management  
 Brokers   Dividends   Exports of goods and services  
 Business sector   Drop Ship Retail   Factory Inventories  
               
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