Inflation
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Inflation has been described as a both a general condition of rising prices, measured by increases in the Consumer Price Index (CPI), and an expansion of the money supply that causes a currency's value to fall. U.S. CPI-based annual inflation has risen steadily through 2008 and by September was above 5.3%.
Inflation defined by rises in CPI measurements focuses more on inflation's results rather than the causes of inflation, some argue.[1] Earlier definitions, by contrast, stressed its origination through a sudden increase ('inflation') in the supply of currency and/or goods to an economy.
According to InflationData.com, a tracking website, the CPI-based annualized monthly U.S. inflation rate has varied from 3.94% in April to 5.60% in July.[2] The site claims it measures the inflation rate accurately to two decimal places whereas the U.S. Bureau of Labor Statistics, which compiles the raw data, calculates the rate to only one decimal place.
References
- ↑ What is the Real Definition of Inflation?. InflationData.com. Retrieved on September 25, 2008.
- ↑ Inflation Rate in Percent for Jan 2000-Present. InflationData.com. Retrieved on September 25, 2008.
