Scribd Logo
Upload

Welcome to Scribd!

  • Inflation MLS 2-G

    Uploaded by

    Krizza Mae Mavinta
    34 views11 pages
    Inflation is defined as a rise in the general level of prices for goods and services over time, which results in a decrease in the purchasing power of a currency. It is typically measured using the Consumer Price Index (CPI), which tracks the prices of goods and services purchased by households. There are different types of inflation ranging from creeping inflation, which gradually increases prices over time, to hyperinflation, where prices rise rapidly by double or triple digit rates. Common causes of inflation include increasing the money supply, rising labor costs, demand outpacing supply, and increases in production costs.

    Original Description:

    INFLATION MLS 2-G Group 2

    Copyright

    © © All Rights Reserved

    Available Formats

    PDF, TXT or read online from Scribd

    Did you find this document useful?

    Is this content inappropriate?

    Report this Document
    Inflation is defined as a rise in the general level of prices for goods and services over time, which results in a decrease in the purchasing power of a currency. It is typically measured using the Consumer Price Index (CPI), which tracks the prices of goods and services purchased by households. There are different types of inflation ranging from creeping inflation, which gradually increases prices over time, to hyperinflation, where prices rise rapidly by double or triple digit rates. Common causes of inflation include increasing the money supply, rising labor costs, demand outpacing supply, and increases in production costs.

    Copyright:

    © All Rights Reserved
    Download as PDF, TXT or read online from Scribd
    Flag for inappropriate content
    Download as pdf or txt
    34 views11 pages

    Inflation MLS 2-G

    Uploaded by

    Krizza Mae Mavinta
    Inflation is defined as a rise in the general level of prices for goods and services over time, which results in a decrease in the purchasing power of a currency. It is typically measured using the Consumer Price Index (CPI), which tracks the prices of goods and services purchased by households. There are different types of inflation ranging from creeping inflation, which gradually increases prices over time, to hyperinflation, where prices rise rapidly by double or triple digit rates. Common causes of inflation include increasing the money supply, rising labor costs, demand outpacing supply, and increases in production costs.

    Copyright:

    © All Rights Reserved
    Download as PDF, TXT or read online from Scribd
    Flag for inappropriate content
    Download as pdf or txt
    of 11

    INFLATION

    MLS II-G | GROUP 2

    WHAT IS INFLATION?
    is a rise in the general level of prices of
    goods and services in an economy over a
    period of time.
    it is an ongoing fall in the overall purchasing
    power of the monetary unit.

    MLS II-G | GROUP 2

    Consumer Price Index


    (CPI)

    measures changes in the price level of a market


    basket of consumer goods and services
    purchased by households.

    MLS II-G | GROUP 2

    TYPES OF INFLATION
    Running Inflation
    Galloping Inflation
    -a rapid acceleration in -prices rises by double or
    the rate of rising prices more triple digit inflation rates
    than 10% per annum.
    like 400% or 999% per
    annum.
    Creeping Inflation
    Walking inflation
    -the inflation of a nation -the
    price
    rise
    is
    increases gradually, but moderate. It is a warning
    continually over time.
    signal for the government to
    control it before it turns into
    running inflation.
    MLS II-G | GROUP 2

    CAUSES OF INFLATION
    Inflation is the result of a number of complex economic
    factors with no clear consensus among economists.
    Some proposed factors for causes of inflation
    include:
    Increase in overall monetary supply. When the total
    amount of money available increases, the value of
    that money decreases.
    Increased labor costs. Greater labor costs drive up
    the cost of prices as labor is one of the most
    significant factors in overhead.
    MLS II-G | GROUP 2

    Demand pull
    -refers to a situation when prices of goods and
    services increase because there are not enough
    goods and services to meet market demand.
    Cost push
    -occurs when a vital product has its supply line
    interrupted or costs dramatically increased. A rise
    in petroleum prices leading to increased costs in
    the general economy is a perfect example of costpush inflation.

    MLS II-G | GROUP 2

    EFFECTS OF INFLATION
    POSITIVE EFFECTS
    Debt
    Mundell-Tobin effect
    Offsetting negative
    effects of deflation

    NEGATIVE EFFECTS
    Unemployment
    Investment Bubbles
    Hoarding
    Social Unrest

    MLS II-G | GROUP 2

    Top 10 countries with highest inflation rate in the world


    (2014)
    Eritrea
    Burundi

    COUNTRIES

    Venezuela
    Malawi
    Ethiopia
    Argentina
    Iran
    Sudan
    Syria
    Belarus
    0

    10

    20

    30
    40
    INFLATION RATE (%)
    MLS II-G | GROUP 2

    50

    60

    70

    Top 10 Countries with the Lowest Inflation Rate in 2014


    Cyprus

    0%

    Spain

    -0.03%

    Cratoa

    -0.33%

    Senegal

    -0.53%

    Montenegro

    -0.62%

    Greece

    -0.80%

    Niger

    -1.08%

    Bulgaria

    -1.16%

    Samao
    Guinea-Bissau

    -1.20%
    -1.27%

    -1%

    -1%

    -1%
    -1%
    -1%
    0%
    Inflation Rate in Percentage
    MLS II-G | GROUP 2

    0%

    0%

    Inflation Rates in Selected Asian Countries in 2014


    Indonesia

    6.7

    Myanmar

    6.1

    Vietnam

    Cambodia

    4.9

    Laos

    4.7

    Philippines

    4.4

    Malaysia

    3.3

    Thailand

    2.4

    China

    2.3

    Singapore

    1.8

    South Korea

    1.7

    East Timor

    0.3

    Brunei

    0.2
    0

    4
    5
    Inflation Rates

    MLS II-G | GROUP 2

    MLS II-G | GROUP 2

    You might also like