6 Things You Should Know
Created by: Preston Thompson
1st Thing You Should Know
The first thing you should know about inflation is what what inflation is in general. Inflation is the increase in price of goods and services. As inflation rises the value you of the dollar that you own decreases and buys less goods and services.
This picture above shows you the inflation of products from 2000 to 2010.
2nd Thing You Should Know
The second thing you should know about inflation is how it is measured; inflation is measured using the consumer Price Index (CPI) which the CPI is a measure of the average price of over time of a product. CPI is many things other than that though. CPI can also tell you the economy is doing, or as a mean of adjusting and fluctuating dollar values
3rd Thing You Should Know
The third thing you should know about inflation is that inflation effects your life. Inflation increases the price of everyday goods. Inflation can effect what you buy and when you buy goods and services like things such as gas or even a loaf of bread.
4th Thing You Should Know
The fourth thing that you should know is what industries are effected by inflation. The industries that are most effected by inflation are air transport, food retail, apparel, appliances, newspapers, consumer products, shipping of goods, mining, petrochemical and consumer electronics. Meaning that what ever happens to inflation in your country effects almost everything in your life
5th Thing You Should Know
The fifth thing you should really know about inflation and when you hear about it on t.v. or on the radio is what percent of inflation is good and what is bad. A good inflation is normally a 2% or 3% inflation. Normally when a inflation is much higher or even lower it is a bad thing,
6th Thing You Should Know
The last thing you should know is who has the highest percents of inflation and who doesn't. The largest increases of inflation of countries recorded in 2015 were Venezuela (159%), Ukraine (49.98%) and South Sudan (41.1%). The lowest rates of inflation were Canada with 2.1% and the United States with 1.9%.