Inflation

How it is used

Central to interest rate decisions and loan pricing. Inflation rises, falls, slows or picks up, and central banks set an inflation target. It is usually measured with the consumer price index (CPI), which TurkStat (TÜİK) publishes every month. Bankers compare interest rates with inflation to judge real returns.

Example sentences

1. Annual inflation slowed for the third month in a row.

2. When inflation is high, deposit rates usually rise as well.

Common collocations

• annual inflation
• inflation target
• high inflation
• inflation rate
• bring inflation down

Related terms

• real interest rateThe interest rate after taking inflation into account, roughly the nominal rate minus the inflation rate. It shows the true gain or cost of money.
• policy rateThe main interest rate set by a central bank to steer the cost of money in the economy and bring inflation towards its target.
• central bankA country's or region's main monetary authority, which issues money, sets the policy interest rate and works to keep prices and the financial system stable.
• interest rateThe price of borrowing money, shown as a percentage of the amount borrowed or saved for a period, usually one year.
• devaluationAn official decision by a government or central bank to lower the value of its currency against other currencies, usually under a fixed exchange rate system.

This word in other fields

The same English word can have a different meaning in another field:

• inflation · Economics

More terms: Interest & Exchange Rates

• fixed rate
• variable rate
• APR
• exchange rate
• foreign exchange
• compound interest
• maturity
• basis point
• spread
• accrue
• simple interest
• appreciate