Inflation vs personal income: main trends

One of the most important characteristics of economy’s state of any country is a level of inflation, which manifests itself in the growth of the general price level. The rise in the price level is not equivalent to the notion of "inflationary price growth", as it may include price changes due to changes in the quality of products and services. There is no single statistical indicator capable of separating one from another, especially since an assessment of the change in quality is impossible without the involvement of expert methods. Therefore, an adequate assessment of inflation is possible only with the use of a developed system of indicators. For the most general characteristic of the level of inflation in the world practice, price indices are used, in particular the consumer price index (CPI), which allows estimating the level of inflation in the consumer market.

9 April, 2018 10:19