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What is the difference between inflation, deflation and double-digit inflation?

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Question added by FATEH BOUCHENE , institut d'emission , banque centrale d'algerie
Date Posted: 2017/06/21
Tamer Nawar
by Tamer Nawar , Functional Consultant / Sr.System Analyst , Egabi Solutions

Inflation : rising in general level of prices of goods and services in a economy over a period of time. When the general price level rises, each unit of currency buys fewer goods and services.

Deflation :refers to situation,where there is decline in general price levels, hence deflation occurs when the inflation rate falls below 0%

double-digit inflation I think when prices between 10 and 99 per cent per year.

 

Ammar Atif Eltirife Obied
by Ammar Atif Eltirife Obied , Financial MIS Analyst , CTC GROUP

 

Inflation : A rise in general level of prices of goods and services in a economy over a period of time.   When the general price level rises, each unit of currency buys fewer goods and services.  Thus, inflation results in loss of value of money.Deflation :Deflation refers to  situation, where there is decline in general price levels.   Thus, deflation occurs when the inflation rate falls below 0% (or it is negative inflation rate).   Deflation increases the real value of money and allows one to buy more goods with the same amount of money over time.   Deflation can occur owing to reduction in the supply of money or credit

double-digit inflation

when prices rice at between 10 and 99 per cent per year.

Abdul Jawwad Rehmani
by Abdul Jawwad Rehmani , Exchange Operations Manager , Matrix Exchange Limited

Inflation in general terms means an increase in prices. The prices of a basket of goods are compared with a base year to identify the rise in their prices. Inflation is one of the key data watched by every central bank around the world in order to take necessary actions on their fiscal policy. So is inflation good? Yes it is. A nominal rise in prices reflects a healthy economy, but anything in excess is bad. So when we talk about double digit inflation or hyperinflation, it is something where the price rise has gone way beyond the control of the Central Government and it completely eradicates the value of the currency in a sense. Some of the notably cases of hyperinflation in recent times are Zimbabwe and Venezuela. The cost of goods increase multi-fold overnight. Most central bankers have a target range of 2% for inflation and all their policies are adjusted based on these figures. For Example, of all the major developed economies around the globe, FED is the only one which is (aggressively) raising rates. This is because their inflation has reached their mandate of 2% and they would not want to over heat the economy.

Deflation on the other hand is a case exactly opposite to inflation where in the prices are constantly falling. Deflation usually occurs during an economic contraction. Th most recent example of deflation is Japan. The BOJ reduced its key rates to 0% in the 1990's to counter deflation but not until 2006 did they see the results.

To sum it up, a little inflation is good and accepted but anything (continuously) higher or lower can cause troubles for the economy.

salah eddine kalkoul
by salah eddine kalkoul , directeur de banque , banque de développement local -B.D.L

Inflation , c'est inonder le marché financier par l'injection des sommes d'argent colossales  soit en fiduciaires  ou en scripturales et que cette somme d'argent  correspond  à  une marchandise fictive par contre la déflation c'est l'action opérée par les autorités monétaires pour régulariser le marché financier et par conséquence liquider l'inflation

M sankar Achari
by M sankar Achari , Manager Data Analytics , Piramal Swasthya Management and Research Institute

The main difference between inflation, deflation and double-digit inflation is decrease in purchasing power, increase in purchasing power and higher decreasing in purchasing power in case of double-digit inflation respectively.

syed owais ali
by syed owais ali , supervisor , Fathe Moters

The Inflation is part of increasing the value and the deflation is decrease the value then we have a double digit inflation is that part of increasing the vale in double digit.

Mohamed Fayez Ahmed Gadel-Rab
by Mohamed Fayez Ahmed Gadel-Rab , Tax Auditor , Egyptian Tax Authority - Egyptian Ministry of Finance

Inflation is simply a measure of the extent of increase in prices.

Deflation is simply the opposite of inflation. That is, prices fall from one period to the next.

Double-digit inflation:- when prices rise at between 10 and 99 per cent per year (or) double-digit inflation is a double-digit price increases.

Khizar Muhammad
by Khizar Muhammad , Division Accountant , Saad Al Qahtani Contracting (SAQCO)

Inflation is when prices of basic items increase mainly because of the increase in demand or the power of consumer increases as they have more money when the government starts churning out new cash at faster rate. Deflation is the opposite when the prices of items fall. Double digit inflation is when prices increase by more than 9% up till 99%

jihane bachar
by jihane bachar , professeur , lyceé taibatoune

inflation is the increase in prices

Mukaila Mallick
by Mukaila Mallick , Administrative Officer , The Football College Abuja

Inflation is persistence increase in price of goods and services , too much money is chasing few commondities. Double digit inflation is when inflation rate is more than 9%. While deflation is an opposite of inflation which termed a decrease in price of goods and services.

Mohamed Lahbali
by Mohamed Lahbali , TRESORIER , CMG/RADISSON BLU MARRAKECH

l'inflation est la hausse de la valeur monétaire alors que la désinflation et la baisse de la valeur monétaire/Inflation is the rise in monetary value while disinflation and the decline in monetary value

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