Скачать или смотреть What Is Inflation? - Inflation Rate Explained - How Is Inflation Measured? - Rate Of Inflation

In this video we discuss what is inflation, how is inflation measured, and some of the affects of inflation. We also cover some of the things that cause inflation to increase

Transcript/notes
Inflation is basically a measurement of how much more expensive goods and services have become over a particular period of time, or in other words, an increase in the overall level of prices in the economy.

As an example, if an item costs $100, and in 1 year, the rate of inflation was 5%, that same item would cost $105, with all other contributing factors remaining the same.

In the US, inflation is measured on a monthly basis using the CPI, or consumer price index. This index uses the prices of more than 400 goods and services, including, food, housing, transportation, entertainment and health care.

The index has a starting point, or base time period, which is 1982 to 1984, from which to make comparisons. This base period is 100. So, for a made up example, if the CPI was calculated to be 258.8 on January 1st, 2021, then the cost of living would have risen 158.8% since the base period.

Here is how this is calculated, along with the formula to calculate it.
And here is an example of 2019 to 2020 change in CPI and the rate of inflation for the year.

The federal reserve targets a 2% inflation rate as being good for the overall economy.

Some things that increase inflation are an increase in demand for products or services, increase in production costs such as raw materials or wages, natural disasters, and when a government prints more and more money it diminishes the value of a dollar.

Some affects of high inflation include, it lowers consumer buying power, is harmful to people with fixed incomes such as retirees and lower income consumers, it increases interest rates driving up the costs of borrowing money and can in some cases lead to a recession.

A decrease in inflation, deflation, a fall in the overall level of prices, can increase purchasing power of consumers, and can be caused by many factors including an increase in production, an increase in supply of products or services, or a decrease in in demand for products and services.

Chapters/Timestamps
0:00 What is inflation?
0:11 Example of inflation
0:23 How inflation is measured
0:49 How is inflation calculated?
1:20 What increases inflation?
1:35 Some affects of high inflation
1:51 Deflation