11 Facts About Inflation rate

Inflation rate presupposes the establishment of money, which arose as an unanticipated social construct over a period of perhaps 2500 years as a result of a variety of innovations and advancements.

The Federal Reserve Board pays particular attention to the core inflation rate to get a better estimate of long-term future inflation trends overall.

Inflation rate is most widely calculated by determining the movement or change in a price index, typically the consumer price index.

The inflation rate is the percentage change of a price index over time.

Inflation rate measures are often modified over time, either for the relative weight of goods in the basket, or in the way in which goods and services from the present are compared with goods and services from the past.

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Inflation rate numbers are often seasonally adjusted to differentiate expected cyclical cost shifts.

Rational expectations models them as unbiased, in the sense that the expected inflation rate is not systematically above or systematically below the inflation rate that actually occurs.

Inflation rate seems to act in an asymmetric way, rising more quickly than it falls.

Inflation rate depends on differences in markets and on where newly created money and credit enter the economy.

Inflation rate is the decrease in the purchasing power of a currency.

Inflation rate can act as a drag on productivity as companies are forced to shift resources away from products and services to focus on profit and losses from currency inflation.