6 Things you Should Know About Inflation
BY: Audrey Azpell and Tess Hogan
1. What inflation is... Inflation is an increase in the price of goods and services. It is measured in CPI (Consumer Price Index), and it is a year to year number from a comparison of select products. If inflation is mild, it can actually stimulate growth in the economy.
2. How it affects your life... You will have to pay more for goods that you normally get for a lower price. But, you could benefit from inflation if you are a recipient of income inflation. Many people get aggravated with prices changing and going up; major ones include gas prices and food, which effects your daily life.
3. Industries most affected by inflation... Air transport is at the top of the list of most effected. This is because oil prices increase, causing jet fuel to become super expensive. Other industries include the food, apparel, and appliance industries. An example would be cereal, and how grain prices are going up, and for apparel, wool and leather prices would increase.
4. Countries with the highest inflation... Belarus' inflation rate is currently 19.8%. The next highest is Sudan, with 46.8%. The highest percentage of inflation rate is the country Venezuela, which is 60.9%. This is not good for these countries economies because the inflation rate is super high, and the countries cannot be very well run as of right now.
5. Countries with the lowest inflation, but not deflation.... Italy has .09% inflation and Hungary has .1%. But, this doesn't actually mean that this is a good thing. A lack of inflation isn't such a good thing. There should be a mild amount of inflation, for good economic growth.
6.Causes of inflation... There are many causes of inflation. The two main causes are demand pull inflation, and cost push inflation. Demand pull inflation is when the price level is rising because there is an unbalance with supply and demand. Cost push inflation is when the price level is rising because of wages and natural materials.