Thursday, December 15, 2005
Inflation vs Core Inflation
In case you're wondering about the difference between these 2 terms:
* Definitions of inflation, inflation rate, and core inflation rate
* Current rates for 2005 indicate inflation is up at an annual rate of 4.9% due to a 37.1% annual energy price spike. This compares to 3.3% inflation rate in all of 2004. However, the core inflation rate is currently at 2.1%.
Note: To clear up a common misconception, inflation doesn't cause price increase. Its the other way around. When prices go up (like energy prices have done recently), there is inflation. There are various types of inflation - we're in a manageable state at the moment, meaning low-medium.
* Definitions of inflation, inflation rate, and core inflation rate
* Current rates for 2005 indicate inflation is up at an annual rate of 4.9% due to a 37.1% annual energy price spike. This compares to 3.3% inflation rate in all of 2004. However, the core inflation rate is currently at 2.1%.
Note: To clear up a common misconception, inflation doesn't cause price increase. Its the other way around. When prices go up (like energy prices have done recently), there is inflation. There are various types of inflation - we're in a manageable state at the moment, meaning low-medium.
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