Does Inflation Affect You As An Individual Consumer

Firstly Inflation is an upward movement in the average level of prices. Its opposite is deflation, a downward movement in the average level of prices. The boundary between inflation and deflation is price stability. Inflation can either be negative or positive; it could mean making products more expensive. There are a number of effects of inflation that can

1. What is inflation? Inflation is an increase in prices for goods and services (What is Inflation?).

According to the Federal Reserve Bank of San Francisco (2002), inflation can be defined as the increase in the level of prices and a decrease in the purchasing power of money. In short, money loses its value due to the increase of the prices of goods and services. Products that can experience this are food, clothing, electronics, raw materials, and more. The reasons for these occurrences are complex since there are two types of inflation, and each has its respective causes.

In the first place, inflation can be defined as a persistent increase in the overall level of prices charged for goods and services. It is constantly changing but it is only measured

Inflation is the sustained increase in the general level of prices for goods and services in a county, and is measured as an annual percentage change. (Investopedia) During periods of inflation, the prices of products and services will rise. There are several reasons why an economy would see a rise in inflation. Decrease in supplies, corporate deciding to charge more, and consumer confidence are some of the reasons why an economy would see the inflation rate increase. Consumer confidence is when consumers gain more confidence in spending due to a low unemployment rate and wages being stable. Decrease in supplies is when consumers are willing to pay more for a product or service is that is slowly becoming unavailable due to a decrease in supplies. Corporate decisions are when the corporations basically decide

In economics, with the inflation is a rise in the actual general level of prices of goods and services in an economy from over a period of time. When the general price level rise, such as each of the units currency buys fewer goods and services. Consequently, inflation reflects a reduction in the purchasing power4 per unit of money. This therefore means that with the loss of real value in the medium of exchange and unit of account within the given and actual economy. With a chief measure for example and the price of inflation is within the given inflation rate, the annualised percentage change within a general price index over time in which is normally the consumer price index.

As the diagram, figure 1, demonstrates, during the implementation period of ObamaCare (2010-2015), the rate of inflation is falling gradually and reaches 0.55% in 2015. It implies that economic growth within that period has slowed; but owing to the market self-correction, when the prices of goods and services fall, customers are more likely to have a higher purchasing power then usual, it means that they probably spend more money on buying goods and services. Thusly, it encourages country’s production and slightly larger the capacity of the country’s economy. This effect can be proved by figure 2, the bar chart has forecasted a trend of upswinging inflation rate after the execution of the ACA, ……..

The phenomenon of inflation has been described in three different views: a) general view, b) Keynesian view and c) modern view. According to the general view it has been described as the increase in the price of goods and services but decrease in the value of the money. According to Keynes, it is the states when there is increase in the goods and prices as well as increase in the employment. The inflation is caused due to the increase in the expenditure that causing the shortage of the goods and

Inflation is the generalized increase in cost of goods or services sold. Inflation causes a decrease in purchasing power. Purchasing power is how much can you get for your dollar. For example, with $1 I could buy 3 apples or I could buy 2/3 of a book. You get more purchasing power with the apples. With inflation you might for $1 get 2 apples and 1/3 of the book. Inflation is an indicator of a healthy economy.

Inflation means value for money is decreasing, the prices of goods are increasing so people prefer to buy goods

Inflation happens when there is more and more money being created, this lessens the value of each individual dollar. Inflation also lowers the standard of living because people decide to buy now and pay later, this also creates higher inflation. Inflation causes the business cycle to

In conclusion inflation is a increase in the general price level of goods and service. Inflation does not impact your life in the short run,

?Inflation is a process that distorts the allocation and distribution of scarce resources by both raising the general level of prices and by altering relative price returns? (Jones, 2001). Siklos (n.d.) elaborates that hyperinflation occurs when the inflation rate exceeds fifty-percent on a monthly basis (p. 60). Inflation is not a new concept and has befallen many countries all over the world. For example, the first recorded hyperinflation to

Inflation is considered to be one of the most “harmful” economic phenomena that manifest in contemporary economies, being considered a chronic disease difficult to control, which can cause recessions (Thornton, 2012, p. 119). Inflation is a serious imbalance in the currently economy and is represented by a generalized increase in prices and a simultaneous decrease in the purchasing power of the national currency. It is a final indicator that shows at the end of a fiscal period if the monetary, fiscal and legal policies were coordinating and were leading to consumer price stability. Deflation is often defined as the opposite of inflation, namely as a situation where there is a general decrease in prices over a long period of time. However,

When there are many potential buyers of certain goods but the supply can not match the increased demand hence, results in Demand-pull inflation. Demand-pull inflation doesn’t result in inrease in rate of Inflation every time.