2007-02-08 22:36:55 · 6 answers · asked by venky 1 in Business & Finance ➔ Other - Business & Finance
A rate of increase in the general price level of all goods and services
Supposedly the price of wheat in 2007 is $ x/kG
and in 2008 the price goes up to $ y/kG
Then price increase (%) will be= {(y-x)/x}*100
If this happens to the general price level on all essential commodities then this price increase(%) is termed as inflation rate.
The general inflation rate in India is considered to be 7-8%.
2007-02-09 02:05:01 · answer #1 · answered by Anirban RoyChoudhury 2 · 0⤊ 0⤋
In economics, the inflation rate is the rate of increase of the average price level (a measure of inflation), usually some form of consumer price index. Alternatively, the inflation rate is the rate of decrease in the purchasing power of money. This is sometimes expressed as an "annualized" number, even if the period measured is less than a year.
2007-02-08 22:49:56 · answer #2 · answered by arup s 6 · 0⤊ 0⤋
Hi,
You just find the question with following line.
"What are the reasons behind INFLATION?"
You will get many answers on this point, it will solve your question also. This question was raised by me only, so I know this.
2007-02-08 23:26:48 · answer #3 · answered by Ketan 2 · 0⤊ 0⤋
It is the rate of concentration of financial resources in few hands.
2007-02-08 23:51:44 · answer #4 · answered by echaris 2 · 0⤊ 0⤋
The simplest answer I can give is this:
Inflation rate is how fast the dollar is losing its value.
2007-02-08 22:48:03 · answer #5 · answered by not yet 7 · 0⤊ 1⤋
the percentage of increase in the price of each item over a specific period of time.
2007-02-08 22:41:26 · answer #6 · answered by Anonymous · 0⤊ 0⤋