Inflation it

The inflation Reasons

Rates of inflation

Inflation Types

Inflation Consequences

The Monetary depreciation

Inflation of costs

Open inflation

The Runaway inflation

Struggle against inflation

Inflation in Russia

Inflation in the USA

Inflation in Ukraine

Inflation in Zimbabwe

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Inflation in the USA

Inflation routinely worsens your buying power. It occurs because the rise in prices means that you should pay more for the same goods and services, than before. Inflation can help you if you are the successful recipient of the income of inflation. You can benefit by inflation of the prices for assets, for example, on housing accommodation or the share if you have the assets purchased before bullish demonstration. However, if your income increases slower rates, than the general inflation, your buying power drops, even if you work more. In general, a main consequence of inflation is decrease in your standard of living.

dollar Inflation

Inflation not influences all equally. Petrol prices can double, while your house loses the value. It that, what's happened during financial crisis of the 2008 which has begun in the USA. There was a deflation of the prices for housing accommodation which has fallen to 31,8 %. Meanwhile, there was an inflation of the petroleum prices, 148 dollars which have reached record-breaking a high level for barrel. As petroleum prices operate petrol prices petrol cost has grown to 5 dollars for gallon.

After that, the Federal Reserve System of the USA of the beginning quantitative easing, and the federal government has accepted the plan of provision of economic incentives for recession end, investors were disturbed by a development of inflation. As a result, they began to buy up gold. In the issue the price of gold left on a record in 1895 dollars for ounce for September, 5th, 2011. In this case, there was no inflation on gold and petroleum, and a deflation of the prices for housing accommodation and population incomes.

Inflation also has other bad side effect. As soon as people start to expect inflation, they start to lay out money, without saving up them. It because they think that things will cost more expensive later hardly. These are Consumer spendings result in stronger inflation.

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