does any one know the inflation rates from november 2005 in the uk?
The current inflation rate in the UK is 4.75%. This has remained fairly constant for the last couple of years. However there was a 0.25% rise in August 2006. From August 2005 the inflation base rate was 4.50%.
Try the website below for some more information.
Hope this helps.
http://inflationdata.com/Inflation/Infla...
Try this it looks like its got them all
i need monthly inflation rates for britain, japan and the usa in the last 5 years.
I also need Europe inflation rates, although every country there has its own inflation, is there an index that gives the average monthly inflation in europe???
thanks alot for the reference!!
The information asked for is available in the source shown.
VR
Why the inflation rates world wide became lower in the 2000%26#039;s?
Please give me a few reasons.
I think this started already in the 1990s when central banks became more independent of governments and began adopting formal, public inflation targets with the goal of making the process of monetary policy more effective and transparent.
Central banks try to reach these targets by influencing interest rates which expands or contracts the monetary base.
This only works when exchange rates are kept floating and do not depend on government induced devaluations and pegs.
Interests rates are just one of many things that affect inflation. If interest rates are low, people are more likely to borrow money to buy things. When more people are buying, manufacturers, distributors and stores are more likely to increase prices. Things are selling, so they can raise the price and make more money. When interest rates are high, people are less likely to borrow money to buy things because their payments increase with higher interest. Sales slow down. When sales are low, prices are less likely to increase because higher prices would reduce sales even more.
I wish I knew........ I wish I knew..........
don%26#039;t know
I guess because if its a higher interest rate for borrowing will create inflation, the more money you have to pay to get loans, that is passed on to the consumer. Business%26#039;s get loans just like regular people, they pass the cost onto the consumer, But there are many ways that inflation is caused, like the falling dollar, not enough supply to meet demand etc..
Don%26#039;t no (i%26#039;m 15yrs old)
maybe, the higher the interest rate, the more money is paid so therefore more money being in circulation.
Consequently, more money being around devalues the money so inflation rises....?
Hope its right
Inflation is measured as the growth of the money supply in an economy, without a commensurate increase in the supply of goods and services. This results in a rise in the general price level as measured against a standard level of purchasing power. There is a variety of inflation measures in use, related to different price indices, because different prices affect different people. Two widely known indices for which inflation rates are commonly reported are the Consumer Price Index (CPI), which measures nominal consumer prices, and the GDP deflator, which measures the nominal prices of goods and services produced by a given country or region.
Mainstream economists%26#039; views on the causes of inflation can be broadly divided into two camps: the %26quot;monetarists%26quot; who believe that monetary effects dominate all others in setting the rate of inflation, and the %26quot;Keynesians%26quot; who believe that the interaction of money, interest rates and output dominate other effects. Keynesians also tend to add a capital-goods (or asset) price inflation to the standard measure of consumption-goods inflation. Other theories, such as those of the Austrian school of economics, believe that inflation results when central-banking authorities increase the money supply (Monetary inflation).
In one sentence, the higher inflation, the pricier things are, the more interest rates go up.
Easy - think about how interest rates effect the supply of money in the economy. If they raise the interest rates, there is less money out there .... it costs more to borrow it. ..... however, if they lower interest rates, it makes it easier for people to borrow .... and thus more money out there.
Tie this to inflation based on the amount of dollars chasing the amount of goods. If everyone is packing hundreds, then prices will go up (inflation will go up). If no one has money, then prices will go down ..... eventually ..... and inflation will go down.
Hope this helps!
My observation - and I%26#039;m not an economist - is that as spending increases so retailers increase their prices until they reach some resistance level from the consumer and they start being more cautious about spending. This is essentially inflation. Governments - always greedy for more cash then increase interest rates making credit more expensive so retailers stop raising their prices and inflation goes down. I think...
According to Terry Savage on Chicago Tonight last night, if the dollar continues to slide the yields on long term Treasury bonds will fall and the price of bonds will rise. The fed has been playing with the %26#039;fed funds rate%26#039; (overnight rate) since Greenspan was appointed by Reagan in an attempt to prevent inflation. Greenspan has been credited for the low interest rates of the nineties. Some people are now blaming him for the poor real estate market because the prices of homes became inflated as more and more people were able to get financing with low interest rates. These people normally would never have bought homes. Now they cannot afford their payments. They are foreclosing. Banks are writing off bad loans. Credit is tight. The U.S. can%26#039;t attract foreign investment in the dollar anymore. We are all screwed.
Now what was it that Chewey said??
thanks a lot
Do you mean as the unemployment rate declines?
There is a short-term trade off, known as the Phillips Curve, between the inflation rate and the unemployment rate. This, like I said, is a short-run effect only and only occurs when the shock to the economy is from the demand side. When there%26#039;s a supply-side shock like a rise in the price of oil, you will see there%26#039;s no trade off: both unemployment and inflation may rise.
On MyEssays.com you can buy an essay that I wrote about this subject in 2002.
I understand the basics, lower interest rates=higher inflation, higher interest rates=lower inflation. But is it possible to have high inflation, and high interest rates? Thanks for the answers.
Absolutely. A real life example of this is the New Zealand (NZ) economy. Inflation has surpassed the legislated standards for price stability under the Polci Targets Agreement, %26quot;inflation must be kept between 1 to 3 per cent inflation in the medium term%26quot;. Although inflation has been slightly over 3% in the last half a decade, non-tradeable inflation has averaged 4.2% over the period.
Tradeable inflation is the inflation on goods and services that have imorted substitutes to compete with them, forcing domestic producers to compete with the world price. Tradeable inflation in NZ had averaged around 0.5%, with deflation during two years in the period. Non-tradeable inflation, such as real estate, has remained high.
The central bank of NZ, or the Reserve bank of NZ (RBNZ), has continually increased the Official Cash Rate (OCR) [wholesale interest rates] to curb consumtpion and investment, thus theoretically decreasing inflation.
However, since the NZ economy has the second highest long-term interest rates in the OECD (1st is Turkey), foreign savers wish to deposit their money into NZ banks. They demand NZ dollars (NZD), which causes the NZD to apreciate. The appreciation of the dollar leads to increased inmports, as they are now relatively cheaper in terms of NZD. The result is a net increase in consumption, so increasing interest rates to control inflation is actually causing inflation to increase.
Absolutely; in fact, it is almost inevitable. If investors are to get any real return on their money, the interest rate must exceed the inflation rate.
It is possible. Interest rate is just a monetary policy tool that Central Bank can use to target or control price level. We cant say lower interest rates=higher inflation, higher interest rates=lower inflation but what we can is %26quot;raising ineterest rates%26quot; help lower inflation and vice verca.
Yes, it is possible to have high inflation and high interest rates. I think this actually happened during the %26#039;70s in the US.
High inflation can put pressure on interest rates to rise. Lenders want to make sure they don%26#039;t lose money on their investments. For example, if the inflation rate is 8% a year and the interest rate is only 4% a year, that will discourage people from lending money (thereby putting upward pressure on interest rates because there is less money out there available for borrowing) because instead of gaining 4% a year in interest by lending money, they would actually be losing 4% due to the inflation rate being greater than the interest rate. That sort of difference between the interest rate and inflation would also encourage people to borrow because the money they borrow would be worth more than the money they have to pay back (and a greater demand for borrowing puts upward pressure on interest rates).
Basically, inflation can make anything more expensive, and that includes the cost of borrowing money.
Recently I have picked up Peter Lynch%26#039;s %26quot;Learn to Earn%26quot; book. He talks about a market multiple in the book and does a cross study of Nike and J%26amp;J and says that the market multiple was more than what J%26amp;J%26#039;s PE was. Where can I find up to the minute or whatever market multiples? Also, Where could I find inflation rates as well. I know that they are based upon the Consumer Price Index but I am not educated enough to figure it out based upon that. Thirdly, since I am in the education stage of stock investing, I would like to know if anybody can recommend a stock market simulator game that doesnt coincide with the real market but is simulated for the sake of learning at a faster pace than waiting for the markets. If I could find a game that does correspond to the markets that would be nice as well. Of course I am looking for free games and no money involved. (Just thought I would make that clear) Thanks for the info
I found a game for you, but I have to have more time to find the other things you wanted..good luck%26gt;%26gt;
http://www.smartstocks.com/
http://www.bls.gov/cpi/
Thank You, Voters..
11/11/06/.. Report It
Thank You, Voters..
11/11/06/.. Report It
I need to locate or query a database that provides the inflation rates for Bogota, Columbia, monthly, from 2001 to 2005
Inflation rates apply to consumer prices within a country, not a specific city. In the case of Colombia (not spelled Columbia) ...
2001: 7.6%
2002: 7.0%
2003: 6.5%
2004: 5.5%
2005: 4.9%
What are some reasons the inflation rates are what they are today??? I need actual economical reasons. Thanks so much! : )
Inflation is tied to excess money (debt and currency) supply.
Most money is created via private loans. The Federal Reserve%26#039;s job is to make sure the private world keeps loaning money. %26quot;Open Market Operations%26quot;, %26quot;Reserve Requirements%26quot; and the %26quot;Discount Rate%26quot; are the Federal Reserves tools for keeping the money flowing. Federal injections of money (by any of these means) equate to future inflation.)
The market goes down because injections equate to inflation and the people with money to invest are concerned that future inflation (coupled with taxes) will outpace there benefits from investing in a business activity. The investors are moving to real items (such as gold). Therefore, when the fed lowers rates, the private loans continue to shrink and jobs shrink. This is what is known as stagflation (interest rates and unemployment both increase).
Here is a good description of how the Federal Reserve manipulates the economy: http://www.a2dvoices.com/realitycheck/ma...
We have been borrowing heavily, the value of the dollar has fallen.
to just look at the fallen dollar value explains enough of it.
look at oil, only traded in dollars internationally.
So lets just say $1 = 5 Saudi Riyal
Oil was $60 a barrel, so the Saudi made $300 Riyals per Barrel
Now lets say the dollar has fallen by 1/5 of value in last few years. so instead $1 =4 Saudi riyals then for the Saudi to make the same amount for his oil has to charge $75 dollars for the same oil. So we of course are paying more to buy it.
Well the dollar has fallen by more then 1/5 in last few years so naturally the above has occured even more so.
Oil though is not used in the inflation index, yes it ends up in all our products (transportaion costs), but we measure inflation based on prices to consumers so when the higher transportaion costs and any other reasons business must raise their prices actually end up causing the price to the consumer to go up then we count that rise as inflation.
So oil hikes, hits the pumps, and sooner or later also hits the groceries, and everything else. that is a source of inflation, then It costs more to heat your home and drive to work so you ask the Boss for a raise (and we raised minimum wage so even the lowest paying jobs are getting a raise), Labor costs go up, which again makes the Boss to raise prices to make the same profits, so another source of inflation. The rise in utility bills hits everyone so another source. The store rents the building the owner of the building is paying more for his groceries/utilities gas at the pump so he raises the rent: another source.
You can see it will snowplow through the economy which is why the FED normally will target interest rates to keep inflation under control as a top priority, and normally even at the expense of economic growth.
I%26#039;m saying normally as inflation was starting to rise and so the Federal reserve ws raising interest rates, but when the economy stalled so fast in the 4th quarter, they then switched and now are trying to stimulate the economy by cutting rates even though the inflation numbers do not look good, so they are Gambling that they will be able to get growth going and then be able to get inflation under control later. ???
It%26#039;s part crack-up boom, part dollar devaluation and part emerging market demand.
Im looking for historical inflation rates and governemnt interest rates for major nations such as US, UK, Japan etc dating back as far as possible.
Thanks for any suggestions or answers!
:)
http://www.whatprice.co.uk/financial/bas...
OR
http://www.thisismoney.co.uk/economy
have a good read
???Would you Please ad info about this %26quot;fall in inflation%26quot;...are you talking about a specific instance or are you talking about something more general....are you referring to increased interest rates slowing expansion and therefore increasing unemployment... in effect lowering inflation rates????
How are lenders and borrowers affected as inflation rates change and they attempt to protect their purchasing power?
Inflation lowers the value of the dollar which weakens the economy but the government can stimulate the economy by lowering interest rates. By lowering the interest rates borrowing and lending is made easier and more appealing. However, this does have repercussions since as we have seen recently...people buy more than they can afford and have their homes foreclosed on. This creates more of a strain on the economy and doesn%26#039;t really protect anyone.
Discuss the relationships which are suggested to exist between interest rates,inflation rates %26amp; exchange rates
In general: Lower interest rates --%26gt; higher money supply --%26gt; higher consumption -%26gt; higher investment --%26gt; higher income --%26gt; higher prices --%26gt; inflation
Lower interest rates (while the other country%26#039;s interest rates the same and higher than the domestic interest rates) --%26gt; money goes away from the country which has lower interest rates --%26gt; and goes to the country with higher interest rate --%26gt; exchange rates goes lower for the domestic curency (for example, money goes away from dollar and goes to Eurozone --%26gt; higher Euro, lower dollar)
As you can see, is a chain reaction. Interest rates is the crucial factor.
I hope this helps
a brief knowledge of the terms used will help suffice the answer
A fixed rate ( this means the amount being charged stays the same ex. $50.00 per month every month) will not necessarily cure the problem but it could help alleviate the %26quot;not knowing%26quot; how much the rate will be from billing period to billing period.
7% ARE YOU KIDDING ME?
Inflation makes everything go down in value compared to the money you have today. My $100 today buys me 100 shmounces (I made up a new unit to make the math easy) of gold. In one year with 3% inflation it will take $103 to buy those same 100 schmounces of gold.
If you are borrowing the money then the cost is 4% and you get the benefit of not losing the 3% that you would have lost if you waited, so 4%-3%= 1% nominal. You pay the 4% in interest rates and the 3% in the amount it didn%26#039;t go down in value because you got to enjoy the fruits right now.
If you are saving the money then it is 4%-3%=1%. You are paid the 4% interest rate which buys you 3% less when you do spend it.
As you can see inflation helps you in one case and hurts you in the other but the nominal rate is still the same. Weird huh?
Its all about the math.
4+3=7%. But to be more correct, there is a formula.
Real= (Nominal - Inflation)/(1+Inflation)
Formula is Real rate of interest = (Nominal rate of interest - Inflation rate)/(1+Inflation rate).
For lay man use and for cosidering lesser number of years, Nominal rate = Real rate + inflation rate
In this case, Nominal rate of interest is 4+3 = 7%
Is this a simple supply and demand problem, i.e., more people have money to spend, so supply goes down, demand goes up, and prices rise? How did the 5% figure that is tossed around get arrived at?
As labor is more scarce, it costs more.
As firms pay more for labor, they charge more for goods.
As goods cost more, inflation goes up.
Etc.
This is why productivity gains is the best way to wage gains.
The lower the employment rate the higher demand for workers causing wage rates to go up, causing inflation.
I am not an economics major so I will do my best to explain...
The more people in work, the more people that have money to flood the system with their money. The more money that is flooded into the system the more the prices go up. Honestly, supply and demand do not have a lot to do with it. It%26#039;s mainly that more money floods the system so the Value of the Dollar drops. When the Value of the Dollar drops, prices go up to compensate. I hope this makes sense.
The 5% figure is usually decided by the amount of american%26#039;s who are on welfare and are unemployed (must meet both qualifications). So, if you have a next door neighbor who deals drugs he is not counted as unemployed because he%26#039;s not getting money from the government only from druggies. They take the amount of people on welfare and divide it by the most recent sensus of total american%26#039;s
I believe the theory is that with a fewer unemployed people, employees have more leverage to request a raise, or leave for another job. The employer then must offer some other person more money to hire that next person away from his current employer. Thus wage increases begin to spiral. And to pay for the added salary, however small, the business man will add a little more to his product price.
Thus as wages go up faster, so does the cost of everything else. If wages can go up slower, such as with people having less leverage for a raise, inflation is kept low.
Not sure about that 5% number.
Please explain me in details as i m unawre of these terms too
so plz explain me thse terms as well as the things practically going on in USA which can affect global economy
Are you economics student
if so than understand the inflation and recession through the books
Think of interest rate as the cost of borrowing money. If the price/cost goes up, demand goes down.
Less demand for money translates into lower aggregate demand in the economy. (People have less access to money, so they buy less goods.)
Since inflation is driven in large part by the level of aggregate demand in an economy, less demand for money will usually lead to lower inflation as well.
Generally speaking, a higher real interest rate reduces the demand for money because the cost of borrowing money becomes more expensive.
If interest rates increase, expected inflation decreases as a result or the reduced demand fr money.
This strategy to %26quot;fight inflation%26quot; is know as monetary policy.
Think the interest rate as the price of money... As the price of money increases the demand for it will decrease....
As the interest rates increases people will be less prone to consume and invest.... They are going to delay their consumption...
So suppliers facing this will decrease their prices to meet to demand...
Of course we should be talking about real interest rates in here and no expectations on the consumer side...
it is because when there is no umemployment, everyone has a job, everyone is happy, everyone has money. one way to inflation is when the firms can%26#039;t find new employees and have to take and %26#039;Steal%26#039; other employees from other firms; which is done by offering a higher salary. as this happens many times, people will make more money. so the cost of production can rise for each firm, so they have to increase revenue, and other firms see this increase in salary and revenue, and raise ther own prices. this chain of events can keep happening for a long time. which will lead to massive inflation.
other way of inflation in case of total employment, is when firms see that everyone is making enough money to live happy. and the products of firms can become inelastic as everyone can afford it. so they raise their prices to make more profit, which will cause another chain of events which will also result to a massive inflation.
so in conclusion, all the developed countries, are trying to keep the unemployment rate at between 2% and 3% in the economy. which is not too low but just perfect.
When the unemployment rate is very low the marginal propensity of consumers to consume is relatively high. Which means that the amount of money in circulation is relatively bigger compared with the amount being saved and thus being in the banks than when there is a higher unemployment rate.
I.e. means that everybody is taking out of his account more money at the same time, which means, that the banks are left with less cash. The same time people want to take on new credits in order to satisfy their wish for consumption.
The Fed tells the banks how much M1 or gold they need to have in reserve with them for every 1000$ they lend to someone, this is called the reserve rate. If the reserve rate were 10% the bank would need to have 100$ deposited with the fed for every 1000$ they lend, (less the money customers have deposited in their bank). So when the demand for credits goes up the commercial banks pressure the Fed to lower the reserve rate, which means they can give out more money in credits. The same time this means that the total amount of money in circulation goes up, while the amount of gold that is deposited as a reserve doesn%26#039;t grow. Basically a dollar note is a paper that declares that you have a single unit share in the countries gold reserves.
So if there was a small country that owned only on kilo of gold and there were 5000 1$note in circulation. Every 1$note would represent 0.2 mg of gold. If the country would now double the number of dollar notes issued each 1$note would be worth 50% less (by reducing the reserve rate) or represent only 0.1mg of gold.
So in order to provide the banks and the people with more money which they are willing to spend, as they feel save because they all have a job, and the economy is doing fine the Fed lowers the reserve rate which results in an inflation.
So inflation is actually not something that just happens but which is controled by the Fed.
Everything in economics comes down to supply and demand, and when demand is high and supply is tight, prices go up. A low unemployment rate suggests that the economy is running full-out trying to keep up with demand, and that labor and other resources are stretched to the limit.
When the unemployment rate is really low (say 4.5%), it is assumed that employers are having a hard time competing with each other to hire and retain the available labor, and that they%26#039;ll have to resort to raising wages to get and keep people.
That alone doesn%26#039;t equal inflation -- it may just mean businesses will suffer lower profits. But in such a scenario, it%26#039;s likely that most other goods and services are also in tight supply. There%26#039;s huge demand for raw materials, for electronic components, for consumer products, etc. People buying things are also competing with one another just as employers do for hiring. The result may be that everyone, seeing this supply-demand situation, finds they can raise prices on their own products a bit. And THAT equals general inflation.
The low unemployment rate may just be more of an indicator of this kind of tight supply...or it could in time be the cause, as full employment leads to more people spending more money for things.
In Keynesian economics, when there is an increase in aggregate demand, two things can happen: (1) either more resources are being utilized to produce more to meet the increase in aggregate demand - in other words, more labor is being employed, more raw materials are being used, and more of the economy%26#039;s productive capacity is being employed, or (2) when the economy can expand no further, prices begin to rise to meet the increase aggregate demand. When the unemployment rate is low, it is a sign that the country is operating at or near full-employment and most if not all the country%26#039;s productive resources and capacity are stretched to the limit. The only thing that can happen when this limit is reached is inflation.
Because historically, this is what tends to happen...
Low unemployment causes wages to rise and so increases demand and therefore prices if production does not keep pace. That the fed has suppressed wage growth for the last 30 years out of fear of inflation is partly responsible for the growing income inequality in the US. Economist assume that the rich will save extra income but working people will spend any increases so large wage increases to the super rich is not an inflation problem. Given that the savings rate has declined during this period their assumption appears incorrect. The US experience in the 50%26#039;s and 60%26#039;s which had low inflation, low unemployment, rapid wage growth, and high savings rates indicate that perhaps economist are wrong.
That is why they bargained for a fixed rate and paid more for it. Adjustable rates are much cheaper....at first.
However, it is the artificially low interest rates that created the bubble we are going through to begin with, and every dollar we earn or save was devalued when the fed kept playing with interest rates, and the banks got the %26#039;new money%26#039; in loans, so at this point they have created a real problem with forclosures, never mind the calculated cost of a fixed/vs adjustable rate of interest.
The forclosures and newly %26#039;bad%26#039; debt and secondary impact to the rest of the economy is what is causing the Bears Sterns type problems.
Vote for Ron Paul. He is the only one who has a plan to address it, or at least not make it even worse as the other candidates would do with CONTINUING the overspending of money we don%26#039;t have. He would drastically slash costs to get us back on track while increasing the money left in our pockets in this economy.
