Who does inflation affects?
Inflation affects everyone. Inflation is resulted from 2 possible scenarios: the economy is booming or the economy is struggling. In the event where the inflation is the outcome of a thriving economy due to increase in national output, the increase in income may increase at a higher rate than prices. However, if inflation is brought about by other factors such as increased cost of production....Introduction
Inflation is the general increase in prices of household goods such as food, clothing, transportation, etc. This leads to a decrease in purchasing power and hence, the same dollar you have can be used to buy fewer items as before.
Inflation is measured by the percentage increase of our consumer price index (CPI) on an annual basis. CPI is a basket of household goods and they have a weightage in it usually presented in a pie chart. In Singapore, CPI is compiled by the Department of Statistics on a monthly basis.
