Inflation, detailed information about
inflation
Inflation in brief
Inflation means a reduction in the value of money; in other words, a rise in general price levels.
The literal meaning of the word inflation is to blow up or get bigger. If the amount of money in a
country - the money supply - grows faster than production in that country, the average price will
rise as a result of the increased demand for goods and services. Inflation can also be caused by
higher costs being charged on to the end-user. These might be raw material costs or production
costs which have risen, but could also be higher tax rates. These price rises cause the value of
money to fall. You can therefore buy less with the same amount of money. But this does not need
to have an immediate effect on purchasing power. urchasing power only declines if wages rises
less rapidly than prices.
Consequences of limited inflation
!overnments often strive for an inflation rate of around " to # percent per year. $uch low
inflation is beneficial for the economy. %ow inflation encourages consumers to buy goods and
services. &elaying will mean that they would have to pay more for the same product. %ow
inflation also ma'es it more appealing to borrow money, since interest rates are usually also low
during periods of low inflation. (aintaining low inflation is therefore an important goal for
governments and central ban's because of the economic benefits.
Consequences of high inflation
)s indicated above, limited inflation is good for the economy. But high inflation is less
beneficial. *igh inflation can cause the population+s confidence in their own currency and
economy to decline, and it can be less appealing for foreign investors to invest in the country
concerned. *igh inflation therefore often has a harmful effect on economic growth. If inflation
gets too high, a country+s central ban' will often intervene by raising its interest rates and thus
discourage the creation of money.
Consequences of deflation
The opposite of inflation is deflation. ,ith deflation the real price level falls. You can therefore
buy more and more with the same amount of money as time passes. &eflation is very bad for
economic growth because it is very li'ely that consumers will postpone their purchases because
they expect to have to pay less for them in the near future. In periods of deflation governments
and central ban's often see' to stimulate the economy, for example by lowering interest rates.
The most important inflation figures
) wide range of inflation figures are recorded and published in most countries and regions. this
include consumer prices and producer prices. These figures ma'e it possible to monitor price
developments closely. This website features the following inflation figures for a large number of
countries-
CPI consumer prices
.I stands for /consumer price index+. It is a measure of the average price that consumers
spend on goods and services in a mar'et-based /bas'et+ of goods and services. In order to
calculate the .I, the prices of a collection of goods and services need to be collected.
These prices are then weighted on the basis of the share that they have of average
consumer spending. The index is usually calculated annually, but in some countries it is
also done 0uarterly. 1or most countries the inflation based on the .I is viewed as the
most important inflation figure for the country. The .I can be used to ad2ust things li'e
wages3salaries and pensions.
HICP consumer prices
The 4.B created the *I., the harmonised Index of .onsumer rices, in order to be able
to compare consumer prices between the various 45 countries. This is a consumer price
index which is comparable to the .I and which has been harmonised for the 45. The
*I. is a weighted average of the price indices of the member states and is calculated for
each country. The 45 sets itself the goal of safeguarding price stability, which means an
*I. of around "6 a year in the medium term.
Inflation 7)verage .onsumer rice .hange 68 for Thailand in year "9:# is #.99# 6. &ata for
inflation are averages for the year, not end-of-period data.
This ma'es Thailand ;o. ::< in world ran'ings according to Inflation 7)verage .onsumer rice
.hange 68 in year "9:#. The world=s average Inflation 7)verage .onsumer rice .hange 68
value is <.>? 6; Thailand is :.>? less than the average.
In the previous year, "9:", Inflation 7)verage .onsumer rice .hange 68 for Thailand was #.9"
6 Inflation 7)verage .onsumer rice .hange 68 for Thailand in "9:# was or will be 9.<96 less
than it was or will be in "9:".
In the following or forecasted year, "9:<, Inflation 7)verage .onsumer rice .hange 68 for
Thailand was or will be #.<# 6, which is :<.">6 more than the "9:# figure.
The Average Inflation in Thailand was reported at -0!"
percent change in #00$, according to the International
monetar% fund &I'()In #0*", Thailand+s Average Inflation
is e,pected to be *-! percent change .ata for inflation are
averages for the %ear/ not end-of-period data In #00$,
Thailand+s econom% share of world total 0.P, ad1usted b%
Purchasing Power Parit%, was 022 percent In #0*",
Thailand+s share of world total 0.P is forecasted to be 0!*
percent This page includes a chart, historical data and
forecast for Thailand+s Average Inflation
