Inflation
, Definition of Inflation
•Rate of inflation is the rate of change in the general
level of price
•Rate of inflation (year t) = price level (t) – price level (t-1) X 100
price level (t-1)
Price level (or price index) is the weighted average of the prices
of the different goods and services in the economy
, Definition of Inflation
•Rate of inflation is the rate of change in the general
level of price
•Rate of inflation (year t) = price level (t) – price level (t-1) X 100
price level (t-1)
Price level (or price index) is the weighted average of the prices
of the different goods and services in the economy
