Annual Inflation Rate is the rate of inflation calculated annually that is on an yearly basis. Inflation is a condition which is harmful for any economy. The price rises from the normal level with the increase in the supply of money and the decline in the supply of goods. Though the the demand of goods and services increase, the supply of the required products do not increase and hence are unable to match the demand of the mass. The prices are very high and the supply of goods is slashed down to a much lower level. The annual inflation rate is calculated by taking into account the average inflation rate of each month. The change in the prices of goods take place on a daily basis and that is compiled into a monthly record which is finally required in preparing the annual report.
US Inflation Rate
During the 1920s the US market faced a crash in the stock market. The decade was marked by this event.
Australian Inflation Rate
Australia's annual inflation at the end of March was 2.4% which accorded with the plans of Australian Reserve Bank. The RBA planned to restrain the inflation rate within 2% and it is a great achievement for them to have been done that. The RBA successfully accomplished its duty. The monetary policy of the RBA is responsible for the low rate of annual inflation in the year 2007 for Australia. The target set through the month of May was 6.25%.
Indian Annual inflation Rate
The annual inflation rate as recorded in India by the CPI is 1.8% which was the rate throughout the month of September. The services provided by the household and housing services went down in the present year. The prices for apparels and shoes rose in comparison to last year. Inflation received its greatest contribution from the dairy sector. The mortgage interest rates increased. All these contributed to the determination of annual inflation rate of India.
1) Indonesian Finance Minister Bambang Brodjonegoro said the government will probably raise subsidized fuel prices before year-end
2) Dilma Rousseff was re-elected as President of Brazil
3) Brazil’s central bank delivered a hawkish surprise too on Wednesday, hiking rates by 25 bp to 11.25%
4) Protests continue to spread in Hungary
Professor at Columbia University. Recipient of the Nobel Memorial Prize in Economic Sciences in 2001 & the John Bates Clark Medal in 1979. Author of "Freefall: America, Free Markets", "The Sinking of the World Economy", "Globalisation and its Discontents" & "Making Globalisation Work".
Mario I. Blejer is a former governor of the Central Bank of Argentina and former Director of the Center for Central Banking Studies at the Bank of England. Eduardo Levy Yeyati is Professor of Economics at Universidad Torcuato Di Tella and Senior Fellow at The Brookings Institution.
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