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
core CPI
suppressed inflation
stabilization policy
beggar thy neighbor policy
inflation-indexed bond
real rate of interest
monetary item
real return
macroeconomic conditions
Fisher hypothesis
real wage rate
stagflation
fundamental risk
cost inflation
replacement cost accounting
repressed inflation
crawling peg system
monetary inflation
gross domestic product (GDP)
tax based incomes policy
retail price index (RPI)
theory of rational expectations (TRE)
current dollar [or any other currency]
money neutrality
idle money
treasury inflation-protection securities
current purchasing power (CPP)
nominal income
wage and price controls
actual loss
national rate of unemployment
wage freeze
demand inflation
after-tax real rate of return
natural rate of employment
base budget
demand management
aggregate income
nominal dollar [or any other currency]
inflation premium
foreign reserve
announcement effect
structural inflation
nominal rate of return
output gap
disinflation
economic environment
overheating
PEST analysis
nominal rate of interest
economic price adjustment
supply side economics
core CPI
suppressed inflation
stabilization policy
beggar thy neighbor policy
inflation-indexed bond
real rate of interest
monetary item
real return
macroeconomic conditions
Fisher hypothesis
real wage rate
stagflation
fundamental risk
cost inflation
replacement cost accounting
repressed inflation
crawling peg system
monetary inflation
gross domestic product (GDP)
tax based incomes policy
retail price index (RPI)
theory of rational expectations (TRE)
current dollar [or any other currency]
money neutrality
idle money
treasury inflation-protection securities
current purchasing power (CPP)
nominal income
wage and price controls
actual loss
national rate of unemployment
wage freeze
demand inflation
after-tax real rate of return
natural rate of employment
base budget
demand management
aggregate income
nominal dollar [or any other currency]
inflation premium
foreign reserve
announcement effect
structural inflation
nominal rate of return
output gap
disinflation
economic environment
overheating
PEST analysis
nominal rate of interest
economic price adjustment
supply side economics
price control
effective rate of interest
constant dollar [or any other currency]
producer price index (PPI)
escalation
constant value accounting
consumer price index (CPI)
core inflation
real rate
real yield
historical cost
monetarism
credit crunch
demand pull inflation
normalized earnings
in real terms
economic growth rate
gold standard
deflator
nominal rate
barter
purchasing power risks
financial model
fiscal policy
retail sales
devaluation
boom
nominal interest rate
fixed income investment
contraction
market timing
stock market crash
indexing
precious metals
macroeconomics
hedging
appreciation
monetary policy
money supply
investment strategy
interest rate
interest
bond
effective rate of interest
constant dollar [or any other currency]
producer price index (PPI)
escalation
constant value accounting
consumer price index (CPI)
core inflation
real rate
real yield
historical cost
monetarism
credit crunch
demand pull inflation
normalized earnings
in real terms
economic growth rate
gold standard
deflator
nominal rate
barter
purchasing power risks
financial model
fiscal policy
retail sales
devaluation
boom
nominal interest rate
fixed income investment
contraction
market timing
stock market crash
indexing
precious metals
macroeconomics
hedging
appreciation
monetary policy
money supply
investment strategy
interest rate
interest
bond
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