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?

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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?

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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?

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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.

Disclaimer

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  • This is an informative article provided on 'as is' basis for awareness purpose only and not intended as a professional advice. The content of the article is derived from various open sources across the Internet. Digit Life Insurance is not promoting or recommending any aspect in the article or its correctness. Please verify the information and your requirement before taking any decisions.
  • All the figures reflected in the article are for illustrative purposes. The premium for Coverage that one buys depends on various factors including customer requirements, eligibility, age, demography, insurance provider, product, coverage amount, term and other factors
  • Tax Benefits, if applicable depend on the Tax Regime opted by the individual and the applicable tax provision. Please consult your Tax consultant before making any decision.

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