In everyday life, sometimes you have to repeat the word "inflation", and not everyone understands its meaning. This term is used by economists in their work, trying to describe the economic situation in the country. What is this phenomenon, and how to calculate the inflation rate? The question deserves a detailed study.
Inflation is the depreciation of money while maintaining the average income of the population. Due to the constant and rapid rise in prices for services, products the purchasing power of money is reduced. To measure inflation, statistical indicators of changes in the price index of goods included in GDP are used. In economics, it is called the GDP deflator. This indicator allows you to find out what causes the growth of GDP: due to an increase in production or a rise in prices.
To identify its numerical characteristic, calculate the inflation coefficient, for which it is necessary to take into account the cost that the consumer basket has. This concept includes the most necessary goods, services and products that a person needs to satisfy his basic needs. The composition of the consumer basket changes in accordance with the state of the economy. If it contains a minimum set of products, then it is called the minimum consumer basket.
The price index allows you to monitor inflationary or deflationary processes that take place in the country. If this indicator rises, then the economic burden on the entire population of the country and the state increases.
The cost of the consumer basket is approved by Rosgosstat and published in print quarterly. In order to identify the inflation rate, it is necessary to calculate the ratio between the cost of the basic and current consumer basket. This indicator is used for economic calculations of the rate of inflation, lower incomes and, accordingly, deterioration in the quality of life. The inflation rate is considered an increase in the price level for a specific period of time - it is expressed as a percentage.
If the price level for the current year has risen to forty percent, then the level of inflation will be equal to this indicator. Most often, the inflation rate is calculated for the year. If prices remained at the same level, we can talk about the absence of inflation.
Inflation has several types. It can be hidden and open, depending on the issue of "empty" money. Distinguish inflation in terms of price growth. If you are guided by this criterion, you can distinguish three of its types: galloping, creeping and hyperinflation. With creeping inflation, prices for goods during the year rise no more than ten percent. This situation is observed in developed countries whose economies are of a market nature. Creeping inflation is sometimes called moderate.
Galloping inflation is characterized by spasmodic price increases. It is inherent in countries with unstable economies, where the inflation rate per year can range from fifty to two hundred percent. It is observed in the states of South Asia, Latin America and in countries that once belonged to the USSR.
But the most dangerous form of inflation is hyperinflation. With her, prices are growing at a very high rate. During hyperinflation, money completely loses its purchasing power. Rising prices for goods range from a thousand or more percent per year.
In addition to inflation, there is an inverse process in the economy, which is called deflation. In this case, a decrease in prices occurs due to the withdrawal of excess part of the money supply from circulation. Thus, the purchasing power of money rises.
Inflation also affects such a mandatory tax payment as the payment for the negative impact: it is levied on enterprises whose activities cause environmental damage. For example, waste is discharged . This payment is calculated by multiplying the actual discharge of pollutants by a fixed fee and by waste and inflation ratios. The last coefficient is set in the Federal Budget Law for a certain year. In 2012, the standards used to calculate payments for the use and pollution of natural resources were 2.05 and 1.67.