Questions inflation widely covered a variety of institutions of the state, from the media, ending with the government and various analysts.But this is largely theoretical arguments to address the particular problems of certain groups of people.More seriously the issue of ordinary citizens are not interested in macro-economic terms, but in everyday life, we can say everyday.Do not shy away from this question, and representatives of small and medium businesses.So what, in fact, the rate of the economy is so important, because usually people perceive inflation as a factor in a rise in prices?
assessment of inflation expectations
fact that inflation is largely able to influence such a figure as the rate of return.Let's start with the fact that in the context of inflation the pricing policy of any enterprise can not be predicted without taking into account inflation expectations, in other words, without an adequate assessment of possible changes of prices, both in the market of services provided or products, but also market a raw material, components, etc..d.Especially difficult is projected financial profitability in the so-called unstable inflation, changes which are difficult to predict.And if in a short-term forecast, this problem can be solved with a greater degree of accuracy in the long term to obtain the correct result is very difficult - rate of return is virtually unpredictable.In order to properly assess the inflationary expectations in the pricing strategy of the company or other business entity is advisable to use the so-called price indices.These indices are taken on social and economic calculations, as well as in the practice of statistical research.
calculation of inflation
In practice, the calculation of inflation expectations includes five basic steps.Firstly, the financial profitability in the future depends on the correct and complete specification of the dynamics of prices, especially those that are subject to forecasting.It is also necessary to determine the period and actually predict how the long-term, short-term or medium-term.If the profitability of shows at a certain interval forecasting inefficiency of production, it is necessary to make a number of changes in the business plan of the enterprise.Secondly, it is necessary to analyze very carefully what looked like the rate of return for the previous period, as well as all analytical indicators of inflation, up to factors have caused it.Thirdly, it is necessary to identify and take into consideration all factors that will influence the future rate of inflation based on the percentage of their impact.Next comes directly the calculation of possible inflation.And the last stage - the probabilistic assessment of all possible variants of a particular situation - from pessimistic to correspondingly upbeat.
Inflation certainly - inevitable process in any society.It only proves the rule any time value of money.This means that the same amount of money more valuable today than tomorrow, or particularly, the next day.It follows that if a particular enterprise profitability shows low growth, the future efficiency will consistently decline due to the depreciation of assets.As a conclusion, the rate of profitability of any company should be planned taking into account all possible risks, including taking into account the rate of inflation, as well as its objective indicators.It is worth remembering that the correct calculation of inflation expectations may allow a greater degree of adequately predict further price policy.
