6 Things About Inflation

Dayshawn Guthridge

What Is Inflation

What inflation is... Inflation is an increase in the price of goods and services. It is measured in CPI (Consumer Price Index), and it is a year to year number from a comparison of select products. If inflation is mild, it can actually stimulate growth in the economy.

How Does Inflation Effect Your Life

How it affects your life... You will have to pay more for goods that you normally get for a lower price. But, you could benefit from inflation if you are a recipient of income inflation. Many people get aggravated with prices changing and going up; major ones include gas prices and food, which effects your daily life.

How Does It Effect Industries

Industries most affected by inflation... Air transport is at the top of the list of most effected. This is because oil prices increase, causing jet fuel to become super expensive. Other industries include the food, apparel, and appliance industries. An example would be cereal, and how grain prices are going up, and for apparel, wool and leather prices would increase.

Country With The Highest Inflation

The country with the highest inflation is Venezuela, which from the previous year jumped from 60.9% to 159.06%. This is not good for this country's economy because the inflation rate is super high, and the country cannot be very well run as of right now.

Country With The Lowest Inflation

The country with the lowest inflation but not deflation is Italy which from the previous year dropped down to 0.3% from 0.9%. But, this doesn't actually mean that this is a good thing. A lack of inflation isn't such a good thing. There should be a mild amount of inflation, for good economic growth.

The Causes Of Inflation

Causes of inflation... There are many 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.