Definition

Noun: - The rate of change of prices (as indicated by a price index) calculated on a monthly or annual basis: This is the percentage increase in the general price level of goods and services in an economy over a specified period, typically a year. It measures how quickly money loses its purchasing power.

Usage

The term "rate of inflation" is used to discuss economic conditions, monetary policy, and financial planning. It is a key indicator for governments, central banks, investors, and consumers. - It is often reported as an annual percentage (e.g., "The annual rate of inflation"). - It can be modified to specify a period (e.g., "monthly rate of inflation").

Examples

• The central bank aims to keep the rate of inflation below 2%.
• A high rate of inflation erodes the value of savings.
• Economists were surprised by the sharp fall in the rate of inflation last quarter.
• Calculating the rate of inflation requires tracking a basket of consumer goods.

Advanced Usage

• "to curb the rate of inflation": to take action to reduce inflation.
  • The government raised interest rates to curb the rate of inflation.
• "underlying/core rate of inflation": a measure that excludes volatile items like food and energy to show the long-term trend.
  • The core rate of inflation provides a clearer picture of persistent price pressures.

Variants and Related Words

• Inflation (n): The general increase in prices and fall in the purchasing value of money. ("High inflation is a concern.")
• Inflationary (adj): Characterized by or tending to cause inflation. ("The policy had an inflationary effect.")
• Disinflation (n): A reduction in the rate of inflation. ("The economy experienced a period of disinflation.")
• Hyperinflation (n): Extremely high and typically accelerating inflation. ("The country suffered from hyperinflation.")

Synonyms

• Inflation rate: (The most direct synonym, often used interchangeably).
• Price rise rate: (A less common descriptive synonym).

Related Phrases

• "to keep pace with inflation": for income or investments to increase at the same rate as inflation so purchasing power is maintained.
  • Wages failed to keep pace with inflation.
• "inflation-adjusted": a value that has been modified to account for the effects of inflation.
  • The report shows inflation-adjusted earnings.

Noun

1. the rate of change of prices (as indicated by a price index) calculated on a monthly or annual basis