inflation
DefinitionThe 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.
This content can be found on the following page:
... #21 on our list of the most popular terms.
... an essential investing term.
Related Terms
commodity-backed bond, constant dollars, cost-push inflation, credit squeeze, demand inflation, disinflation, hyperinflation, index bond, indicator, monetary policy and
inflation appears in these other terms
inflation rate, demand-pull inflation
inflation appears in the definitions of these other terms on BusinessDictionary.com
Loading...
| |
Get our content on your iGoogle page
RSS