what is mean by inflation rate explain briefly?

Answer 1

The inflation rate is the rate of decrease in the purchasing power of money.

For example, the size of a balloon is like the price level, while the inflation rate is how quickly it grows in size.

If the infaltion rate is low, you can buy more for less money and if its high you can buy less for the same amount of money.

Answer 2

Austrian economists define "inflation" as an increase in the supply of money. For example, if there were 100 dollars in existence, in the world, last year, and the US Government were to print up another 5 dollars, this year, then that would mean that there are now 105 dollars, in the world, and the inflation rate would be 5%.

Some people think that "inflation" means an increase in prices. Actually, the Austrians would say that the increase in prices is the RESULT of inflation. Inflation is the increase in the quantity of money.

It is because of inflation, the printing up of excess money (specifically, US dollars) that the prices for things (houses, stocks, oil, etc) have been rising. As the value of each dollar goes down, the prices of things that you can buy, with those dollars, go up.

Answer 3

The inflation rate is the amount that the (average) price of basic (essential) goods and services increase over a given time period (e.g. a month, a quarter, a year). The amount is usually represented as a percentage of the previous figure or price, so it is said to have risen by X percent.
It is also possible to have deflation or 'negative inflation' where the overall retail prices drop.

Answer 4

It can be explained briefly:
1. Banana republics prints "money" and takes the easy way out to pay for a lot of public servants to help dictators stay in power. This cause inflation - too much money chasing too few goods.
2. Country exports high value goods. This create expensive labour. People start spending e.g. driving luxury cars. Country has to import fuel. Too much money chasing too little "goods" - inflation. One reason for outsourcing. Oil is also the cost input to a lot of goods e.g. elastomers, clothes and plastics, etc, etc, etc.
3. Country imports goods in competition with other countries. Supply decreases and demand increases. Cost of goods go up and you have inflation.
This is a very complicated subject hence you need very brainy people to tackle the problem. In the old days many countries colonise "poor" countries to solve this problem. This is no longer a serious option. Hence the decline of the once mighty United Kingdom. Hope I have opened some avenues for your further enquiries!

Answer 5

The cost of a certain number of items on say 1st January compared to the same cost on the previous 1st January. The difference is 'inflation'. The cost has gone up, or, and I have never known this, gone down - (in that case it would be deflation). The items I mention are listed by the Government and may include Petrol, Gas, Electricity, Food, Drink etc..

Answer 6

Its a rate which expresses the moving of the General price index for the specified period of time.

This General price index shows moving (rise and fall) of prices of all goods and services in one national econmy (or country).
So if this price index goes up 3% in January for example, it means that the inflation rate for January is 3%.
:)

Answer 7

darlin...first of all its inflation ...and anything to do with it CANNOT be explained briefly ....... get yr text books out instead ...u'll never get a serious answer here .....