answersLogoWhite

0

An inflation rate of 1-5 signifies a moderate increase in the overall price level of goods and services in an economy. This level of inflation is generally considered manageable and can indicate a healthy economy.

On the other hand, an inflation rate of 10 signifies a much higher and potentially problematic increase in prices. This level of inflation can lead to reduced purchasing power, higher costs of living, and economic instability.

User Avatar

AnswerBot

4mo ago

What else can I help you with?

Related Questions

Does inflation have anything to do with?

Inflation refers to the rate of increase of goods and services in a country Let us say the inflation rate of your country is 10% then whatever was worth $100 last year is worth $110 this year. This is the effect of inflation.


If the CPI was 110 last year and is 121 this year what is this years rate of inflation?

This year's rate of inflation is 10% or [(121 - 110)/110] x 100.


What is annual rate of inflation of all commodities in 2009-10?

8%


What does a lower interest rate mean for savers?

It means that they are getting less money for deferring expenditure and saving instead. However, it is not the low nominal interest rates which matter but what the "real" interest rates are. This is the difference between the nominal interest rate and the rate of inflation. An interest rate of 2% when inflation is 0% is good news for savers but an inflation rate even as high as 10% is bad news if inflation is higher than 10%.


Real interest rate vs nominal interest rate?

Real interest rate = nominal interest rate- inflation rate. If a burger in 2007 is for $100 and if the same burger in 2008 is for $110 then Inflation rate is 10% for 2007 If interest rate in 2007 is 13% and in 2008 interest rate is 14% real interest would be only 14%-10% = 4% That is in real value the return on investment is only 4% because purchasing power of 10% is decreased because of inflation


If Jackson is paid an interest rate of 10 percent on his savings but the inflation rate has risen to 20 percent the purchasing power of his savings is?

If Jackson is earning an interest rate of 10 percent on his savings while the inflation rate is at 20 percent, his purchasing power is decreasing. This is because the inflation rate exceeds the interest rate, resulting in a net loss of value in real terms. Essentially, he is losing 10 percent of the value of his savings each year due to inflation outpacing his interest earnings. Therefore, his savings are effectively becoming less valuable over time.


What will be the price of a 20000 USD car in 10 years if the inflation rate is 5 percent?

It will be approx USD 32578.


What is the inflation rate of India August 2010?

Inflation in India has come down to 9.97% in July 2010, when compared to June 2010 and because of RBI's tightening policy in July 2010, inflation is expected to stabilize at 7% in march 2011, expert says, so the inflation in the month of August 2010, should lies between 9-10%.


Could you tell me some points on Inflation rate its advantage and disadvantage?

Inflation rate of a country is the rate at which the price of essential commodities in a country is increasing. There is no specific advantage of Inflation, but all country's need to have inflation. If prices of commodities do not go up, then the country's economy is said to be in a stand still. An inflation rate of around 5% is considered a healthy inflation rate and it represents an economy that is growing at a steady pace Disadvantages: When the inflation of a country goes beyond control say for example 10% or more then it has a lot of ill effects on the country & its citizens 1. The spending power of the common man comes down 2. Essential commodities prices shoot up and people cannot afford things like food, clothing & shelter etc...


Since 1970 have gas prices risen with the same inflation rate as other prices like milk or shampoo?

No they have risen because of the increasing lack of availability of oil which is used to make gas. Each curency will have a different inflation rate. The dollar maybe see 5%, rubble maybe 10%, and so on. They all have different inflation rates.


What would 10 dollars in 1855 be worth today?

To determine the value of $10 in 1855 in today's dollars, we can use historical inflation rates. Generally, $10 in 1855 is estimated to be equivalent to about $300 to $350 today, depending on the specific inflation calculator used and the exact rate of inflation during that period. This reflects the significant changes in purchasing power and the overall economy over more than a century.


What does the number 10 mean to God?

The number 10 signify completeness