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Inflation

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Macroeconomics

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Abstract

Inflation exists when the general price level is continually rising. Although the relative prices of individual commodities may change during the course of inflation, the main feature of inflation is that all prices are on average rising. Inflation is measured as the rate of change over time of some general index of prices and is commonly calculated as

$$\frac{{{P_t} - {P_{t - 1}}}}{{{P_{t - 1}}}} \times 100$$

where P t = price index or price level at time t.

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Authors
  1. Rosalind Levačić
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  2. Alexander Rebmann
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Copyright information

© 1982 Rosalind Levačić and Alexander Rebmann

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Levačić, R., Rebmann, A. (1982). Inflation. In: Macroeconomics. Palgrave, London. https://doi.org/10.1007/978-1-349-86044-9_20

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