Inflation

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Inflation

  1. 1. INFLATIONThe term inflation is generally used tomean any sustained or continuingincrease in price. Inflation is not amonopoly of the Philippines. It isuniversal experience of all countries,both developed and developing. Thedifference lies only on the magnitudeof price increases countries suffer
  2. 2.  Causes of Inflation Losers of Inflation Measurements of Inflation
  3. 3. Cause of Inflation1. Demand Pull Inflation2. Supply Shocks to Inflation3. Profit-Push
  4. 4. Losers in Inflation1. Fixed income earners2. Savers3. Creditors4. Holders Security
  5. 5. Measurements ofInflation There are at least four commonly used measures of price increase. These are the Consumer Price Index (CPI), the Retail Price Index (RPI), the Wholesale Price Index (WPI), and the Stock
  6. 6. Consumer PriceIndex The CPI is intended to provide a general measure of average monthly annual changes in retail prices of commodities commonly bought by consumers in Philippines, covering all income household.
  7. 7. Retail Price Index The RPI is designed to measure monthly changes of the prices at which retailers dispose of their goods to consumer and end-users. The term “retail price” refers to the price at which sellers orders for spot or earliest delivery usually
  8. 8. Wholesale PriceIndex The WPI is the price of a representative basket of wholesale goods. Some countries use the changes in this index to measure inflation in their economies. The purpose of the WPI is to monitor price movements that reflect supply and demand in industry, manufacturing and construction. This helps in analyzing both
  9. 9. Stock Price Index
  10. 10. Deflation In economics, deflation is a decrease in the general price level of goods and services. Deflation occurs when the inflation rate falls below 0% (a negative inflation rate)
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