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Stealth Inflation
Stealth inflation is a term with different meanings. It denotes an increase in prices that is obfuscated in one way or another. Measurement issues At the level of the economy, the term stealth inflation is used to denounce issues with how inflation is measured or which type of inflation is measured. D.L Losman suggested that the measurement of the consumer price index in the United States may be subject to manipulation in order to lower the adjustment rate of social security benefits. Focussing on which inflation is measured, Peng argues that the focus on core inflation hides commodity-based inflation from the attention of policymakers. Hidden price increases At the level of the consumer, the term stealth inflation usually refers to hidden charges or fees. Examples are overdraft An overdraft occurs when something is withdrawn in excess of what is in a current account. For financial systems, this can be funds in a bank account. In these situations the account is said to be ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
Consumer Price Index
A consumer price index (CPI) is a statistical estimate of the level of prices of goods and services bought for consumption purposes by households. It is calculated as the weighted average price of a market basket of Goods, consumer goods and Service (economics), services. Changes in CPI track changes in prices over time. The items in the basket are updated periodically to reflect changes in consumer spending habits. The prices of the goods and services in the basket are collected (often monthly) from a sample of retail and service establishments. The prices are then adjusted for changes in quality or features. Changes in the CPI can be used to track inflation over time and to compare inflation rates between different countries. While the CPI is not a perfect measure of inflation or the cost of living, it is a useful tool for tracking these economic indicators. It is one of several Price index, price indices calculated by many national statistical agencies. Overview A CPI is ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
Core Inflation
Core inflation is a type of inflation measure which seeks to represent the underlying long-run trend of aggregate price levels in the economy. This is achieved by removing certain items exhibiting short-term significant price fluctuations within the overall consumer basket (as typically measured by the headline Consumer Price Index or other relevant price indices). Core inflation is thus intended to be an indicator and predictor of underlying long-term inflation. The most common approach in accomplishing this is by excluding items frequently subject to volatile price movements, like food and energy. Every country maintains its own calculation of its official core inflation figure and usually reported as complementary to the overall headline inflation by most national statistical agencies. Throughout the years, econometricians have likewise devised alternative approaches in computing core inflation using more formal methodologies. History The concept of core inflation as ag ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
Overdraft
An overdraft occurs when something is withdrawn in excess of what is in a current account. For financial systems, this can be funds in a bank account. In these situations the account is said to be "overdrawn". In the economic system, if there is a prior agreement with the account provider for an overdraft, and the amount overdrawn is within the authorized overdraft limit, then interest is normally charged at the agreed rate. If the negative balance exceeds the agreed terms, then additional fees may be charged and higher interest rates may apply. By analogy, overdrafting of an aquifer refers to extraction of water faster than it will be replenished. History in finance The first overdraft facility was set up in 1728 by the Royal Bank of Scotland. The merchant William Hogg was having problems in balancing his books and was able to come to an agreement with the newly established bank that allowed him to withdraw money from his empty account to pay his debts before he received h ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
