What is Considered When Determining the Annual Inflation Rate

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The fact that the prices of individual goods and services change over time is not surprising. Some fruits and vegetables have become more expensive over time, while technological equipment has become less expensive as technology has improved. On the other hand, we only deal with inflation when the prices of goods and services generally increase.

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What does it mean if the economy is inflated? It can be said that spending the same amount of money every year can buy fewer and fewer things, so the value of money drops. The opposite of this is deflation,  which happen Chile Mobile Number List when goods and services become cheaper over time  . All goods and services used in the home are important. They include not only everyday items like food or gasoline, but also durable goods (such as appliances, computers or clothing) and services (from barbershops to apartment rentals).

Together they make up the so-called consumption basket, which includes goods that households consume over the course of the year. By comparing the sum of their average prices, you can get an idea of ​​inflation over time.

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What causes prices to rise

ie the cause of inflation?
What is the reason for the general increase in market prices? The causes of inflation are varied and you from CU Leads too various. It is influenced by factors related to the state of the country’s economy, monetary policy and instability of the country’s budget. If the central bank decides to increase the money supply, there is a risk of increased inflation.

Devaluation – depreciation of the national currency
Devaluation – depreciation
of the national currency Another factor driving inflation is aggregate consumer demand. What does this term mean in practice? In short, if citizens are able to enjoy growing wealth, they are more likely to spend it, which in turn is associated with an overall increase in prices.

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