Questions tagged [inflation]

For questions that relate to inflation, which is the general increase in the prices of goods and services over a period of time.

Inflation is a rise in the general level of prices of goods and services in an economy over a period of time. When the general price level rises, each unit of currency buys fewer goods and services. Consequently, inflation also reflects an erosion in the purchasing power of money – a loss of real value in the internal medium of exchange and unit of account in the economy.

Inflation - From Wikipedia

263 questions
24
votes
6 answers

What does inflation mean to me?

Everyone buys different kinds of goods. For example I don't smoke tobacco so I'm not affected by increased tobacco prices. I also don't have a car so I'm not affected by the reduced oil prices either. But my landlord increased the monthly fee of the…
Calmarius
  • 521
  • 3
  • 12
21
votes
5 answers

What does an x% inflation rate actually mean?

I've been reading some explanations of inflation and I think I generally understand what it is. What I don't understand however, and I believe this should be trivial, is what a (monthly) inflation of x% actually means. Let's say there's a product…
welluhmok
  • 319
  • 1
  • 2
  • 3
14
votes
1 answer

How inflation really works?

I have a simple question about inflation, what an inflation rate of 10% in 2022 means if in 2021 it was 5% (for example) and 5% in 2020? Let’s say my salary is $1000 since 2020 and it didn’t change, does that mean that the value of my $1000 is $900…
Will
  • 159
  • 1
  • 6
13
votes
6 answers

Can you explain the mechanism of money inflation?

Can you explain the mechanism of money inflation in simple words, understandable by non-professional? Where does it come from?
9
votes
5 answers

What is inflation?

What do people mean when they say a price is Inflation adjusted ? Like a car costing $100 in 1990 would cost $400 today adjusted to inflation? If I buy a car at $100 today and inflation is 0.5%. What would be the value of the car in 5 years when…
mahen23
  • 209
  • 1
  • 5
5
votes
2 answers

What does inflation actually mean?

Inflation, in the ordinary sense, increase in the prices of goods and services. Some economists say inflation up to 5% is even desirable. Why is this so? When governments struggle to control inflation, why is desirable?
4
votes
4 answers

Inflation - Will prices of goods continue to monotonically increase in the long run?

The question primarily is based on the presumption that Governments would ideally want to maintain a small inflationary environment. In that case, are we really talking about a future where groceries that retail at $X a pound today could retail at…
Arvind
  • 49
  • 2
3
votes
2 answers

Calculating an annual inflation rate from monthly data

Let's say I have the following inflation data (for 11 months): "2015-01" = 3.85 "2015-02" = 2.22 "2015-03" = 1.21 "2015-04" = 0.46 "2015-05" = 0.35 "2015-06" = 0.19 "2015-07" = 0.80 "2015-08" = 0.35 "2015-09" = 0.57 "2015-10" = 0.74 "2015-11" =…
ridasagu
  • 31
  • 1
  • 1
  • 2
3
votes
4 answers

How to calculate cash loss over time?

For example, I got £100 few months ago and I didn't spend them - just kept them in my drawer at home. I understand that those £100 from few months ago is not worth same £100 but it is less today. How exactly I can calculate current money value which…
Lukas Greblikas
  • 141
  • 1
  • 3
2
votes
1 answer

How to calculate inter-annual variation of inflation for a 3 month period

I have the monthly indexes taken from the National Institute of Statistics of my country (below), then I can calculate its inter-annual variation easily: ((index month year - index same month year - 1) / index same month year - 1) * 100 But my…
1
vote
1 answer

Is my plan viable for dealing with inflation?

Question about inflation and my idea about how to handle it. Electrical Engineer here,so please bear with me if I use non economics terminology. So as we see the prices are going up for everything. I intend to fight inflation by adjust my finances…
1
vote
1 answer

How do I factor currency devaluation when comparing the prices of houses in two countries?

I am thinking of buying property in Colombia and i'm trying to figure out if (or how bad) currency devaluation will affect it's value in the future. I have historical indices for the value of houses in Pittsburg and Bogotá (so-called "real" value,…
afg
  • 13
  • 3
1
vote
2 answers

Get historic amount corresponding to a specific amount today

Are there any site out there that can give the equivalent value of a specific amount today. For instance, $20 today would be the same as $5 dollars twenty years ago.
jgauffin
  • 113
  • 4
1
vote
2 answers

Inflation calculation

Am I correct in saying that £100 in the year 2000 was worth roughly £60 in 2018 (or had the same buying power to put it another way)? I've used the calculator here, but they way they put it is slightly different to the way I'd like to word it and I…
user85769
  • 23
  • 2
1
vote
4 answers

Easy way to measure how inflation affects me

Is there a simple way to measure how inflation actually affects me? No complicated formulas, or building a basket of goods, give each product a weight in the basket, or spending large amounts of time looking over bills or what not. Some simple…
Pips
  • 1,395
  • 2
  • 11
  • 13
1
2