inflation
The overall general upward price movement of goods and services in an economy, usually as measured by the Consumer Price Index and the Producer Price Index. Over time, as the cost of goods and services increase, the value of a dollar is going to fall because a person won't be able to purchase as much with that dollar as he/she previously could. While the annual rate of inflation has fluctuated greatly over the last half century, ranging from nearly zero inflation to 23% inflation, the Fed actively tries to maintain a specific rate of inflation, which is usually 2-3% but can vary depending on circumstances. opposite of deflation.
Related Terms
Mentioned in these terms
Related Terms on BusinessDictionary
incomes policy
suppressed inflation
core CPI
stabilization policy
beggar thy neighbor policy
inflation-indexed bond
real rate of interest
current purchasing power (CPP)
nominal income
national rate of unemployment
actual loss
stagflation
demand inflation
natural rate of employment
after-tax real rate of return
demand management
nominal dollar [or any other currency]
aggregate income
inflation premium
tax based incomes policy
announcement effect
structural inflation
theory of rational expectations (TRE)
nominal rate of return
treasury inflation-protection securities
disinflation
wage and price controls
economic environment
overheating
wage freeze
PEST analysis
nominal rate of interest
base budget
economic price adjustment
foreign reserve
supply side economics
price control
effective rate of interest
constant dollar [or any other currency]
producer price index (PPI)
output gap
escalation
constant value accounting
monetary item
real return
macroeconomic conditions
Fisher hypothesis
real wage rate
fundamental risk
cost inflation
replacement cost accounting
crawling peg system
repressed inflation
suppressed inflation
core CPI
stabilization policy
beggar thy neighbor policy
inflation-indexed bond
real rate of interest
current purchasing power (CPP)
nominal income
national rate of unemployment
actual loss
stagflation
demand inflation
natural rate of employment
after-tax real rate of return
demand management
nominal dollar [or any other currency]
aggregate income
inflation premium
tax based incomes policy
announcement effect
structural inflation
theory of rational expectations (TRE)
nominal rate of return
treasury inflation-protection securities
disinflation
wage and price controls
economic environment
overheating
wage freeze
PEST analysis
nominal rate of interest
base budget
economic price adjustment
foreign reserve
supply side economics
price control
effective rate of interest
constant dollar [or any other currency]
producer price index (PPI)
output gap
escalation
constant value accounting
monetary item
real return
macroeconomic conditions
Fisher hypothesis
real wage rate
fundamental risk
cost inflation
replacement cost accounting
crawling peg system
repressed inflation
monetary inflation
gross domestic product (GDP)
retail price index (RPI)
current dollar [or any other currency]
money neutrality
idle money
consumer price index (CPI)
core inflation
demand pull inflation
normalized earnings
in real terms
economic growth rate
real rate
real yield
historical cost
monetarism
credit crunch
gold standard
deflator
nominal rate
barter
purchasing power risks
devaluation
boom
nominal interest rate
financial model
fiscal policy
retail sales
fixed income investment
contraction
market timing
stock market crash
indexing
precious metals
macroeconomics
hedging
appreciation
money supply
monetary policy
investment strategy
interest rate
interest
bond
gross domestic product (GDP)
retail price index (RPI)
current dollar [or any other currency]
money neutrality
idle money
consumer price index (CPI)
core inflation
demand pull inflation
normalized earnings
in real terms
economic growth rate
real rate
real yield
historical cost
monetarism
credit crunch
gold standard
deflator
nominal rate
barter
purchasing power risks
devaluation
boom
nominal interest rate
financial model
fiscal policy
retail sales
fixed income investment
contraction
market timing
stock market crash
indexing
precious metals
macroeconomics
hedging
appreciation
money supply
monetary policy
investment strategy
interest rate
interest
bond
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