Factor in inflation

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In daily life, sometimes you have to repeat the word "inflation", not all and not always understood its importance.This term is used to operate its activities economists, trying to describe the economic situation in the country.What is this phenomenon, and how to calculate the rate of inflation?The question deserves a detailed study.

Inflation is called the depreciation of money while maintaining the average income of the population.Due to the constant and rapid rise in prices for services, products, reduced the purchasing power of money.To measure inflation statistics are used by the CPI for goods included in GDP.In economics, it is called the GDP deflator.This index allows to find out what is happening at the expense of growth of GDP due to increased production and prices rise.

to reveal its strength characteristics, calculate the inflation rate, which must take into account the cost, which is the consumer basket.This concept includes the most necessary goods, services and products that a person needs to meet its basic needs.The composition of the consumer basket is changing in accordance with the state of the economy.If it contains a minimum set of products then it is called the minimum consumer basket.

price index allows you to monitor inflation or deflation processes that occur in the country.If the rate increases, then it increases the economic burden on the entire population of the country and the state.

cost of the consumer basket goes Rosgosstatom approval and published in the press on a quarterly basis.In order to identify the inflation factor, it is necessary to calculate the ratio between the value of the consumer basket and the base current.This indicator is used for economic calculations of the rate of inflation, reduction of income and, accordingly, reduced quality of life.The rate of inflation is considered to be an increase in the price level over a specific period of time - it is expressed as a percentage.

If the price level for the current year rose to forty percent, and the inflation rate will be equal to this indicator.Most often, the inflation rate calculated for the year.If prices remained at the same level, we can talk about the absence of inflation.

Inflation has several types.It is the hidden and open, depending on the issue of "empty" money.There are inflation-largest increase in prices.If you rely on this basis, we can distinguish three of its kind: the galloping, creeping, and hyperinflation.When creeping inflation, the prices of goods during the year do not grow more than ten percent.This is the case in developed countries, whose economy is market-based.Sometimes referred to as creeping inflation moderate.

galloping inflation describes the abrupt increase in prices.It is inherent in countries with unstable economies, where the rate of inflation in the year can be from fifty to two hundred percent.There it is in the states of South Asia, Latin America and in the countries that once were part of the Soviet Union.

But the most dangerous type of inflation is hyperinflation.When her prices are rising very rapidly.During hyperinflation money completely lose their purchasing power.The rise in prices of goods is a thousand percent or more a year.

Also inflation in the economy and there is a reverse process, known as deflation.Thus there is a decline in prices caused by the retirement of the excess of the money supply.Thus, the purchasing power of money rises.

Inflation affects the obligatory tax payments such as payments for negative impact: it is charged with companies whose activities are causing environmental damage.For example, the release of waste products is carried out.This payment is calculated by multiplying the actual discharge of pollutants to the fixed fee and the coefficients of the waste and inflation.The last factor is set by the Federal Law on the budget for a given year.In 2012, the standards used to calculate the payments for use and pollution of natural resources, were 2.05 and 1.67.