Inflation rate

Inflation and its impact in India What is Inflation Imagine we had Rs.7 in 2003. One could have purchased a 300 ml Pepsi and gone home happy (excluding the Rs. 2 that shopkeepers charge for refrigerating it). Fast forward 12 years and on would have to shell out Rs.15 to purchase the same 300ml Pepsi bottle. What happened? One would think Indra Nooyi has fleeced us, but in reality, the value of money has reduced. This is attributable to inflation. Inflation is defined as a sustained increase…

If you bought a house for $150,000 with an annual inflation rate of 4 percent, it would take about 18 years for the house’s worth to double based on the Rule of 72. b. If you bought a Picasso painting at last week 's auction for $200,000 and the annual inflation rate is 10 percent, how long would it take to double your money? If you bought a painting by Picasso for $200,000 with an annual inflation rate of 10 percent, it would take around 7 years for the painting’s worth to double. c. If…

the exchange rates, interest rate and inflation rates. All of these things then have an effect on unemployment rates, net exports and imports and foreign exchange rates. When looking to travel the world, it is important to look at foreign exchange rates to see if you have sufficient funds available to get into countries and exchange your currency for theirs. Economies that have high interest rates that are left unchecked can expect a downward spiral not too long after the interest rate stays…

5 most important economic variables (1) GDP (2) Interest rate (3) Personal income and consumption (4) Debt (5) Inflation 【GDP】The gross domestic product (GDP) is one of the most important indicators to evaluate the condition of a country 's economy. It represents the total dollar value of all goods and services produced over a specific time period; thus the size GDP would also indicate the size of the economy of the country. Normally, GDP is used to compare with the previous quarter or year’s…

bank believed the U.S. economy is strong and on the path to sustainable growth so the Federal Reserve should raise the interest rate from zero percent to 0.5 percent . The increased rate’s percent is a small one, but it will affect the market dynamics and millions of Americans, including investors, bankers, home buyers and manufacturers. (Figure 1-2) Low interest rates have been a key contributor to the automotive industry’s growth and sale’s boost percentage, providing buyers with additional…

In order to accelerate the the GDP growth rate, Colombia must address ever-present income inequality which is a direct result of the lack of long-term education, infrastructure, and progressive tax reforms. With the third largest population in Latin America, Colombia currently rests as the second…

the rate of inflation, as measured by CPI, was 3.4% but in 1974, it increased to about 12.2%. The main contributors to this rapid increase are several, but food prices and energy costs were the main culprits. . (Blinder, 1982) As stated before, food costs rose dramatically due to weather in 1972, which it affects were later felt in the form inflation in the next year. This inflationary effect from 1972-1973 was a 20% increase. (Blinder, 1982) The author Alan Blinder suggests that inflation…

interest rates for the second time in more than a decade. The Fed has raised the benchmark rate from 0.5% to 0.75% which is only up by a quarter. The Fed projected that rates would go up by 1.5% in the year's end. When inflation rises interest rates go up, which makes it a little more expensive to borrow money, this will not affect anybody who already has a fixed rate mortgage, or if you have a car loan, but if you do get a car loan tomorrow it will be a bit higher due to the rise of inflation.…

Inflation is the “increase in the general price level of goods and services in an economy” (Heakak, 2017). Inflation can be broken down into different types, resulting from different situation in the economy. When there is a change in the supply side of the economy, cost-push inflation occurs. On the other hand, when there is a change in the demand side of the economy, demand-pull inflation occurs (Surbhi, 2017). Deflation and disinflation help to describe the level of inflation is in an economy…

people under the age of 16, or retired and military personal are not calculated into the work force. The formula for unemployment is can be illustrated as: Unemployment Rate = Number of Unemployed / Total Labor Force. The United States currently has 154.8 million people in the work force with 11.3 million unemployed. This yields a rate of 7.3% of people being unemployed. This percentage of unemployed people can be seen as a good thing so long as there is no cyclical unemployment which is the…