Inflation has the same effect onliquid assetsas any other type of asset, except that liquid assets tend to appreciate more slowly. This means that liquid assets are more vulnerable to the negative impact of inflation. In terms of the broader economy, higher rates of inflation tend to cause in...
Because these figures directly influence policies that affect your life. When inflation rises, central banks might increase interest rates to cool down the economy. This could mean higher loan rates for that new car or home you’ve been eyeing. In short, the CPI isn’t just a number; it’...
How Does Inflation Affect Unemployment? Inflation has historically had an inverse relationship with unemployment. This means that when inflation rises, unemployment drops. Higher unemployment, on the other hand, equates to lower inflation. When more people are working, they have the powe...
A 1% inflation rate implies that an item that cost $100 last year would cost $101 this year. Of course, inflation doesn't affect every type of purchase in the same way, and there is quite a bit more to inflation than the basic idea of things getting more expensive over time. In ...
How do inflation reports affect the Forex market? News about the growth and fall of inflation in the economy can have a big impact on the value of the currency compared to its analogues. Let's assume that core inflation in the US economy is growing rapidly. In this case, traders and inv...
The RPI and CPI are slightly different. RPI includes the cost of housing while the CPI does not. The RPI is the prices of everything, then added up, and divided by the number of things. The CPI is calculated by multiplying the prices of all listed items together, then taking the nth ...
What factors, besides the expected rate of inflation, may affect the rate of interest a borrower pays? When the Federal Reserve lowers the real interest rate, what happens to the output gap and to the actual inflation rate? How does inflation affect Saudi Arabian currency, Riyal?
Interest rates, inflation, natural disasters — get notified when breaking news could affect your finances, and get expert insights to help you plan your next move. Download the app Frequently asked questions How much will I save on my electric bill with solar? Your savings will depend on ...
How can consumer goods companies survive in a world where customers are buying fewer new things?The clear business potential of circular consumer goods can help answer that question. Consumer goods companies should see circularity as an opportunity, not a threat; as we’ll see, circular business ...
Inflation can also occur when governments inject money into the economy. This can lower the value of the currency relative to the things it will buy, causing producers to demand more cash for the things they make and sell. Another common inflation scenario is a shortage ofraw materials. This...