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通货膨胀率(Inflation rate)
通货膨胀率(Inflation rate)
Inflation rate:
It is a currency phenomenon, which refers to the phenomenon of currency devaluation caused by the amount of money issued in excess of the actual amount of money needed in circulation. Inflation and price rise are different economic categories, but there are some relations between them. The most direct result of inflation is rising prices.
The rate of inflation (Inflation, Rate) is the ratio of the excess of money to the actual amount of money needed to reflect inflation and the extent of currency depreciation.
In economics, the rate of inflation refers to the rising rate of the general price level in a given period of time (usually a year).
By balloon analogy, inflation rate is ballooning if the volume is the price level. Or, the rate of inflation is the rate of decline in the purchasing power of money.
In practice, it is not possible to calculate inflation directly or indirectly, but indirectly through the growth of the price index. Because the consumer price is reflecting the commodity after the final price formation the circulation, it is the most comprehensive reflection of the demand, commodity circulation of the currency so that the consumer price index is the most comprehensive, can fully reflect inflation price index. At present, most countries in the world use the consumer price index (Chinas consumer price index), that is, CPI, to reflect the extent of inflation.
[editor]
Formula for calculating the rate of inflation
The rate of inflation (= the current price level - base price level / base price level)
The base is selected in a particular year price level as a reference, so you can put the other phases of the price level by comparing with the base level, which is the measure of the level of inflation. In fact, the above is only one of the three consumption index folding algorithms to measure the level of inflation, but it is the most commonly used, in addition to the GDP algorithm and the production index folding algo
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