1, calculated by the change of price index: inflation rate (price increase rate) = {(current price level-base price level)/base price level} (price increase rate from low to high, subject to base price level) Note the above formula, inflation rate is not a price index, that is, it is not a price increase rate, but a price increase rate.

2. Amount of money)/Amount of money actually needed in circulation × 100%

Inflation rate, also known as price change rate? [ 1]? , is the ratio of excess money to the actual money needed to reflect the degree of inflation and currency depreciation. In economics, the inflation rate is: the increase of the average price level (affected by inflation). Take a balloon for example. If its volume is the price level, the inflation rate is the inflation degree of the balloon. In other words, the inflation rate is the degree of decline in the purchasing power of money.

Extended data:

Inflation rate

important indicator

(1) producer price index

Producer price index is a price index to measure the goods that manufacturers and farmers sell to stores. It mainly reflects the price changes of means of production and is used to measure the cost price changes of various commodities at different production stages.

(2) Consumer price index

Consumer price index (CPI) is a measure of the price of a fixed basket of consumer goods, which mainly reflects the price changes of goods and services paid by consumers, and is also a tool to measure the level of inflation, expressed as percentage changes.

(3) Retail price index

Retail price index refers to the retail commodity price index paid by cash or credit card. The U.S. Department of Commerce conducts a monthly sample survey of retail commodities nationwide, including furniture, electrical appliances, supermarket products and medicines. , but does not include the consumption of various service industries. Automobile sales are the largest single component of the retail industry, accounting for about 25% of the total sales.

Many foreign exchange market analysts are very concerned about the changes in the retail price index. With the rapid development of social economy and the increase of personal consumption, retail prices will rise. If the index continues to rise, it is likely to bring the pressure of rising inflation, make the government tighten the money supply, and the interest rate will gradually rise to the national currency, which will bring favorable support. So the index is positive, theoretically better than the country's currency.

Baidu Encyclopedia-Inflation Rate