Consumer Price Inflation
Inflation
Inflation: A persistent increase in the price level, measures how much more expensive a set of goods and services has become over a certain period, usually a year. Consumers believe that low stable and predictable inflation is best for economy, too high and too low are not good.
Measuring Inflation: To measure the average consumers cost of living, government agencies conduct household surveys to identify a basket of commonly purchase items and then track the cost of purchasing this basket over time.
Consumer Price Index: (CPI) The cost of the basket when measuring inflation at a given time expressed relative to a base year.
Consumer Price Inflation: The percentage change in the CPI over a certain period, most widely used measure of inflation. Ex: base year CPI is 100 and the current CPI is 110 inflation is 10 percent over the period.
Core Consumer Inflation: Excludes prices set by the government and the more volatile prices of products such as food and energy that are most affected by seasonal factors or temporary supply conditions focuses on the underlying and persistent trends in inflation and is also watched closely by policymakers.
Deflation: A persistent decline in the price level
GDP Deflator: A measure comparing the prices of all goods and services produced in the economy during a given year to the prices of those goods and services purchased in a base year.
Gross Domestic Product Deflator: (GDP) The overall inflation rate for not just consumption good but all goods produced in an economy, more broader coverage than the CPI.
Inflation Rate: The percentage increase in the price level from one year to the next.
Inflation Targeting: A policy used to maintain low and stable inflation used by many central bankers.
Introduction of New Goods: Increase variety, allows consumers to find products that more closely meet their needs. In effect, dollars become more valuable, which lowers the cost of, maintain the same level of economic
Inflation: A persistent increase in the price level, measures how much more expensive a set of goods and services has become over a certain period, usually a year. Consumers believe that low stable and predictable inflation is best for economy, too high and too low are not good.
Measuring Inflation: To measure the average consumers cost of living, government agencies conduct household surveys to identify a basket of commonly purchase items and then track the cost of purchasing this basket over time.
Consumer Price Index: (CPI) The cost of the basket when measuring inflation at a given time expressed relative to a base year.
Consumer Price Inflation: The percentage change in the CPI over a certain period, most widely used measure of inflation. Ex: base year CPI is 100 and the current CPI is 110 inflation is 10 percent over the period.
Core Consumer Inflation: Excludes prices set by the government and the more volatile prices of products such as food and energy that are most affected by seasonal factors or temporary supply conditions focuses on the underlying and persistent trends in inflation and is also watched closely by policymakers.
Deflation: A persistent decline in the price level
GDP Deflator: A measure comparing the prices of all goods and services produced in the economy during a given year to the prices of those goods and services purchased in a base year.
Gross Domestic Product Deflator: (GDP) The overall inflation rate for not just consumption good but all goods produced in an economy, more broader coverage than the CPI.
Inflation Rate: The percentage increase in the price level from one year to the next.
Inflation Targeting: A policy used to maintain low and stable inflation used by many central bankers.
Introduction of New Goods: Increase variety, allows consumers to find products that more closely meet their needs. In effect, dollars become more valuable, which lowers the cost of, maintain the same level of economic