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Inflation

A persistent increase in the level of consumer prices or a persistent decline in the purchasing power of money, caused by an increase in available currency and credit beyond the proportion of available goods and services.

1,474 Questions

If the cost of an item was 1.00 in 1885 what would inflation make the cost today?

£2.00 and did u know to have sex i would cost u around 5p for a lapdance and to have it all it wouldn't cost aything !!! sex is great try it

Why do borrowers gain during inflation?

because their purchasing power of money is less in real terms they payback less

Current inflation position in India?

explain the inflationary position in india. describe its causes and mention the steps taken by rbi governor to control inflation

When will the real GDP be higher than norminal GDP?

When there is a deflation in an economy (with the growth is still positive.) This is due to the fact that the value of money increase during a deflation (as opposed to inflation.) However, growth during this period is very difficult since deflation is characterized largely by deffered consumption and investments.

What is the weight of waterpolo ball?

Most lacrosse balls weigh between 140-147 grams.

Keynesian solution to rising inflation?

to control inflation govt takes necessary steps

1 control high prices

2 issue low level of currerncy

How does belly inflation happen?

I have a question. The first time I did belly inflation and when my belly became very big I felt pain under my left rib. It was not very painful.I have stop immediately and pain stop immediately. Then I had a slight burning sensation from left to center. The next day not so intense burning paine was gone. A month or so after it hurts me at this point and it lasts for about a year. Doctor said it was acid. Now I have a feeling I am going to vomit after eating and I burp a lot. Vomit feeling stop because I eat probiotic pills. Otherwise it doesn't hurt anymore. Is this dangerus?

How much would one dollar today be worth in 1957?

Based on the inflation rates over the last 50 years, what cost $1 in 1957 would cost $7.17 in 2006.

What CPI button?

Count Per Inch - The measurement of the resolution of a mouse/trackball as flywheel notches per inch (horizontal and vertical flywheels rotate as the ball is moved). Notches are converted to cursor movement.

How do you inflate clothes?

clothes are made of fibers woven together that air can slip between, but something called a zentai suit, its airtight body suit that's very stretchy and you can inflate in that.

How Inflation Can Destroy Shareholder Value?

Periods of High Inflation usually bring higher interest rates, and pressure to raise wages, and varying distortions to product input prices. They also make it more difficult to price one's own products. Companies that have trouble managing interest rates or those that hold high levels of output inventory would have difficulties in a higher inflation environment. Those that manage these aspects well should not have those issues. RichmondRob

What is an inflation calculator used for?

The inflation calculator is used to figure out how much things cost due to inflation. It can help you figure out how much things will cost in the future if inflation continues at the current rate, it will also tell you how much things cost in different time periods if inflation were to have not happened.

How repo rate used as a tool to control inflation?

Whenever the banks have any shortage of funds they can borrow it from RBI. Repo rate is the rate at which our banks borrow rupees from RBI. A reduction in the repo rate will help banks to get money at a cheaper rate. When the repo rate increases borrowing from RBI becomes more expensive.

Hence, When the repo rate is hiked, the bank gets loan at a higher interest rate from RBI, and henceforth Banks give loan to retail customer/ corporate customer at a more higher rate, so demand for the loan from the customers of bank decreases decreases and there is less money in the market.

Since, the liquidity of the marked is sucked by increasing Repo Rate, public can't afford to pay more for any particular commodity, and hence the inflation of the economy gets controlled.

How can small scale retailers survive in a high inflation economy?

although, many business do not need highly inflectional rate, but to survive different techniques is needed

What is price instability?

INFLATION ,UNLIKE UNEMPLOYMENT, DOES NOT MEAN A LOSS OF OUTPUT.INFLATION IS A RISING GENERAL LEVEL OF PRICES.THIS DOES NOT MEAN ALL PRICES ARE RISING.JUST IN GENERAL TERMS.

Where does Civil engineering fit into the economy?

The house you are staying, the road on which you travel, are all just minor parts of civil engineering; you can now imagine its importance in economy. It is the driver of economy.

What is 2 economic benefits to Ireland of having low rate of inflation?

Two benefits to Ireland of low rate inflation is:

1. Because the price of goods and services from one period to the next remain generally low. e.g a can of coke in Switzerland costs 4 euro while a can of coke here in Ireland costs 1 euro.

2. It can help in economic growth (The rise in quantity of goods and services produced/made from one period to the next)

What is the current rpi rate for England?

Inflation

CPI up to 3.2%, RPI down to 0.0%

Annual inflation rates - 12 month percentage change

Consumer Prices Index (CPI) annual inflation - the Government's target measure - was 3.2 per cent in February, up from 3.0 per cent in January.

The largest upward pressure on the CPI annual rate came from food and non-alcoholic beverages. The effect was widespread but the largest individual factor was the price of vegetables which rose by more than a year ago. There were smaller upward pressures from fruit, mineral waters, soft drinks and juices, bread and cereals, and meat, partially offset by coffee, tea and cocoa where prices fell this year but rose a year ago.

There were further large upward pressures from:

• recreation and culture where, overall, prices rose by more than a year ago. The effect came mainly from a wide range of games, toys and hobbies and from computer games and preschool activity toys in particular.

• transport costs, mainly due to the price of fuels and lubricants which rose by more than a year ago. The average price of petrol rose by 3.2 pence per litre between January and February this year, to stand at 89.5 pence, compared with a rise of 0.1 pence last year. Diesel prices rose by 2.1 pence per litre this year compared with a rise of 0.5 pence last year. Within this division, there was a partially offsetting downward effect from air fares, principally from European and long-haul routes.

• furniture, household equipment and maintenance with upward effects from major appliances and non-durable household goods.

• clothing and footwear where prices rose by more than a year ago.

The only large downward pressure on the CPI annual rate came from housing and household services. This was due to gas and electricity bills which were unchanged this year but rose a year ago when many suppliers increased their rates.

Retail Prices Index (RPI) inflation slowed to 0.0 per cent in February, down from 0.1 per cent in January. The main factors affecting the CPI also affected the RPI. Additionally, there was a large downward pressure from housing with the main effect coming from mortgage interest payments which are excluded from the CPI.

RPIX inflation - the all items RPI excluding mortgage interest payments - was 2.5 per cent in February, up from 2.4 per cent in January.

As an internationally comparable measure of inflation, the CPI shows that the UK inflation rate in January, at 3.0 per cent, was above the provisional figure for the European Union as a whole of 1.7 per cent.

Notes:

CPI is the Consumer Prices Index. It is the measure adopted by the Government for its UK inflation target. The Bank of England's Monetary Policy Committee is required to achieve a target of 2 per cent. Prior to 10 December 2003, the CPI was published in the UK as the harmonised index of consumer prices (HICP).

RPI is the Retail Prices Index. The uses of the RPI and its derivatives include indexation of pensions, state benefits and index-linked gilts.

Inflation is the percentage change in the index compared with the same month one year previously.

The next publication date is 21 April 2009.

Published on 24 March 2009 at 9:30 am on UK National Statistics webpage

http://www.statistics.gov.uk/cci/nugget.asp?ID=19

Discuss how a rapid rate of inflation might affect different groups within an economy?

Rapid inflation will harm all groups through reducing real values, creating uncertainty,

instability and harming the efficient operation of the market system. The level of

inflation will influence the severity of any effects. Those who benefit include the

government, borrowers, importers and some producers. Those who suffer include

fixed income earners, lenders, exporters and some producers.