Inflation is a long and relatively steady increase in prices for all food and non-food goods and services. This is a process of depreciation of money, which occurs as a result of the overflow of money supply channels. As a rule, the purchasing power of money depends on it. Each country has its own characteristics of inflation. In Russia, for example, at the moment, a stable level of 6.6% is maintained. The consequences that the rise in prices entails may be the degradation of the national economy, and the decline in production, and the growth of barter transactions, and social tension, and a lack of confidence in the government, and, of course, a slowdown in economic growth.
The reasons and features of the manifestation of inflation in Russia are as follows:
1) Let's start with demand inflation, which occurs due to the fact that there is a lot of money in circulation, and production at this moment is still functioning, that is, it does not have time to respond to sudden changes in demand. The consequence of this is the excess of demand over production capabilities, which is why prices are rising.
2) The next reason for the growth of the money supply is emissions that are carried out by the government, since the federal budget is not enough for government spending.
3) Cost inflation. In it, growth is accompanied by the fact that production costs are constantly growing, and most of all this is seen in the significant costs of paying workers wages. Therefore, in order to maintain the previous price, manufacturers raise prices for their products. In this case, there is a need to increase salaries, because the purchase of more expensive products requires more money, and this already entails another increase in product prices, forming a kind of vicious circle. All that is listed above can be predicted, given the characteristics of inflation. In Russia at the moment a similar situation is not expected. So say the experts.
An analysis of inflation in Russia at the moment shows that in 2013 economic growth will slow down significantly, which, in fact, will help to more effectively control price increases. Now it is 6.6%. Such an increase occurred in 2012, that is, 0.5% more than in 2011. Now I would like to say what features of inflation in Russia have the most noticeable manifestation. So, food prices are rising, by about 0.9% per month, and for other goods - by 0.3%, while services are getting more expensive by 0.4%.
As a result, we can say that the peculiarities of inflation in Russia show that at the moment the price increase slightly exceeded the forecasts of scientists for this year. But, nevertheless, despite this, prices are not rising as fast as in some countries, so there is nothing to worry about at the moment. In addition, it should be borne in mind that inflation in our country has remained stable at the same level for almost twenty years, so a small increase in prices does not entail serious consequences.