Inflation: How Is It Measured? | Investopedia

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how is inflation measured


Inflation - Wikipedia, the free encyclopedia

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** Inflation **

From Wikipedia, the free encyclopedia
Jump to: navigation, search
This article is about a rise in the general price level. For the expansion
of the early universe, see Inflation (cosmology). For other uses, see
Inflation (disambiguation).

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Gdpercapita.PNGGDP per capita by country (World Bank, 2011)
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In economics, *inflation* is a rise in the general level of prices of goods
and services in an economy over a period of time.^[1] When the general
price level rises, each unit of currency buys fewer goods and services.
Consequently, inflation reflects a reduction in the purchasing power per
unit of money – a loss of real value in the medium of exchange and
unit of account within the economy.^[2]^[3] A chief measure of price
inflation is the inflation rate, the annualized percentage change in a
general price index (normally the consumer price index) over time.^[4]

Inflation's effects on an economy are various and can be simultaneously
positive and negative. Negative effects


Source: en.wikipedia.org/wiki/Inflation

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