What Is Inflation Rate and How Is It Calculated?

What Is Inflation Rate?

What Are the Causes of Inflation?

What Is a Good Inflation Rate?

How Is Inflation Rate Calculated?

What Is the Average Inflation Rate in India?

What Is the Current Inflation Rate for Different Countries?

As you know what inflation rate is, the following table shows the inflation rate of various countries in 2019, 2020 and 2021:

Countries 2019 2020 2021
Argentina 53.5 % 42.0 % 48.4 %
Australia 1.6 % 0.8 % 2.9 %
Bangladesh 5.6 % 5.7 % 5.5 %
Brazil 3.7 % 3.2 % 8.3 %
Canada 1.9 % 0.7 % 3.4 %
China 2.9 % 2.5 % 0.9 %
France 1.1 % 0.5 % 1.6 %
Germany 1.4 % 0.5 % 3.1 %
Hong Kong 2.9 % 0.3 % 1.6 %
India 4.8 % 6.6 % 5.1 %
Italy 0.6 % -0.1 % 1.9 %
Japan 0.5 % 0.0 % -0.2 %
Korea 0.4 % 0.5 % 2.5 %
Malaysia 0.7 % -1.1 % 2.5 %
New Zealand 1.6 % 1.7 % 3.9 %
Pakistan 9.4 % 9.5 % 9.5 %
Qatar -0.7 % -2.8 % 2.3 %
Russia 4.5 % 3.4 % 6.7 %
Saudi Arabia -2.1 % 3.4 % 3.1 %
Sri Lanka 4.3 % 4.6 % 6.0 %
UAE -1.9 % -2.1 % 0.2 %
United Kingdom 1.8 % 0.9 % 2.6 %
United States 1.8 % 1.2 % 4.7 %

Through this article, you got to know what the inflation rate is, and you should also know that it positively impacts the Indian economy. It increases the profits of producers of goods as they can sell them at higher prices. This can also benefit you while investing in the period of inflation as you get additional incentives to invest in production activities.

FAQs About Inflation Rate

What are the effects of inflation? up-arrow

Inflation affects an economy in various ways. It increases the interest rate on borrowings and surges the prices of goods and services. However, it may benefit you by increasing the wages, which helps you improve your living cost.

What is the role of RBI and government in tackling inflation in India? up-arrow

The RBI and government use various tools and policies to tackle inflation in India. It includes fiscal and monetary policies governed by the finance ministry and the RBI. Furthermore, the government can impose structural reforms to tackle the root causes of inflation.

Does inflation affect your life? up-arrow

Inflation is a major factor that lowers your money's value over time. This means that the money you have with you at the start of a year will get you fewer goods at the end.