Inflatsioonimäära

Inflatsioonimäära, meaning inflation rate in Estonian, refers to the percentage increase in the general price level of goods and services in an economy over a period of time. It is a key indicator of economic health and a primary concern for policymakers. A positive inflation rate signifies that prices are rising, meaning money loses purchasing power over time. Conversely, a negative inflation rate, known as deflation, indicates a decrease in the general price level, which can also have negative economic consequences.

The most common measure of inflation is the Consumer Price Index (CPI), which tracks the average change over time in the prices paid by urban consumers for a market basket of consumer goods and services. Other indices, such as the Producer Price Index (PPI), measure changes in selling prices received by domestic producers for their output. Central banks typically set inflation targets, aiming for a low and stable rate to promote sustainable economic growth and maintain price stability. Factors influencing inflation include supply and demand imbalances, changes in the money supply, government policies, and global economic conditions. High inflation can erode savings, distort investment decisions, and lead to economic instability, while persistent deflation can discourage spending and investment, potentially leading to a recession.