The expected inflation rate refers to the anticipated increase in the general price level of goods and services over a specific period. It is based on predictions made by economists and can impact various economic decisions.
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Actual inflation rate: The actual inflation rate is the real increase in prices that occurs over a given period. It is determined by measuring changes in consumer price indexes or other indicators.
Deflation: Deflation refers to a sustained decrease in the general price level of goods and services. It is the opposite of inflation.
Hyperinflation: Hyperinflation is an extremely high and typically accelerating inflation. It occurs when there is an excessive increase in money supply, leading to rapid erosion of purchasing power.