Expected inflation rate

Definition

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.

Related terms

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.