Under inflation realize an excessive increase in the money supply, overflowing channels of circulation of money and lead to higher prices for goods and services.From the Latin term "inflation" means "swelling".The very concept emerged in the XX century in connection with the dramatic changes in the world economy, and originally meant redundancy paper money supply.
Nowadays inflation - the constant companion of a market economy.This is due to the rapid growth of production of goods, complexity of its structure, changes in pricing practices.Changing the dynamics of prices upwards is the basic prerequisite for inflation.Also, the reason is the deficit of the state budget as a result of growth in government spending.
main characteristic of inflation - its value.The higher it is, the worse for the economy.Quantifying inflation is characterized by such indicators as the rate of inflation, t. E. The speed of its development process.
inflation rate depends on the rate of price increases.There are three basic kinds of it:
1. Crawling (or moderate) inflation, with its relatively low price increases.The increase is no more than 10% per year.This type of inflation is characteristic of most developed countries and does not pose a serious threat to their economies.Moreover, some economists even consider it necessary to moderate inflation and health-improving factor to stabilize the value of money.
2. Galloping inflation when the price increase varies from year to 20% to 200%.This rate is already a serious destabilizing factor for the economy and society creates a lot of stress.In the initial stage, the rapid increase in money supply is much greater than the rise in prices.On the main stage, their dramatic splash.This stage is characterized by an increase in the number of barter transactions, partial transition to barter.However, given the rate of inflation may still succumb to predict.
3. The rate of inflation in which prices are increasing year faster than 200%, is characteristic of hyperinflation.When her money lose their function measure of value and means of savings, the economic situation is getting out of control and no longer succumb to predict.When prices rise by fifty percent a month talking about super-hyperinflation, but it is not the limit.
calculation of the rate of inflation is used to estimate the intensity of the process and it is necessary at the conclusion of long-term deals.As a rule, you want to calculate the projected inflation rate for the year, which in turn is calculated according to the expected average monthly growth rate.These forecasts come from official sources, which publishes projections of the economy in the next and more distant periods.
In calculating the projected pace at any time using a formula in which the average expected rate of inflation for the required period is raised to a power equal to the number of months in that period.
Based on this figure, and also predicted the annual inflation rate.These data are used to generate interest in the financial market, which is reflected in the contract price of the stock exchange.
How would you characterize the current rate of inflation in Russia?According to experts, the dynamics of growth is quite high.If this trend continues, by the end of the year inflation figures exceeded all projected figures.When initially forecast level of price increases of 6%, experts today called the figure of about 9%, while in most of the regions where the source of heat is a gas, is planned increase in tariffs by 12-15% and higher.
