6 Things to Know About Inflation

Inflation

How it affects your life.

you will have to pay more for good than normal. But could benefit from inflation if you are a recipient of income inflation. many people get aggravated with prices changing and going up. gas, and food affect your daily life.

Interest Rates.

The FOMC uses federal funding target rates as one of the main tools for managing inflation and pacing the economic growth. Slow the economy or speed it up. By changing the target rate.

Future Purchasing Power

Generally assumed stocks, because companies can raise their prices for goods and services, are a better hedge against inflation. Keeping inflation at the point where it needs to be.

what inflation is

is an increase in the price of goods and services. It is measured in CPI and it is a year to year number from comparison of select products. If inflation is mild, it can actually stimulate growth.

Countries with the lowest inflation

Italy - 0.09%. Hungary - 0.01%. This may not be a good things because little inflation is a good thing. A lack of inflation is not necessarily a good thing.

there should be a mild amount of inflation.

Causes of inflation

There are a ton of causes of inflation. The two main causes are demand pull inflation, and cost push inflation. Demand pull inflation is when the price level is rising because there is an unbalance with supply and demand. Cost push inflation is when the price level is rising because of wages and natural materials.