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Transcript of Inflation
Inflation is the rate the general level of prices of goods and services is rising, and purchasing power is falling.
Inflation on food
Types of inflation
Why it's bad
It affects the value of money, which goes down. Thus creates the inflationary spiral.
Inflation is measured by two main indexes:
Other measurements include:
Inflation of food has risen throughout the years. A characteristic that raises price is volatility.
Interest rates are decided by the Federal Reserve. They meet eight times a year and decide on short-term interest rates.
There are three types of inflation:
Inflation-indexed security protects against inflation.