Infliacija

Infliacija is the general increase in prices of goods and services in an economy over time, which erodes the purchasing power of money. The inflation rate is typically measured as the annual percent change in a price index, most often the consumer price index (CPI) or the GDP deflator.

Causes of infliacija include demand-pull effects, where aggregate demand exceeds the economy’s capacity to produce, and cost-push effects, where higher production costs are passed on to prices. Built-in inflation arises from adaptive expectations and wage-price dynamics. Monetary factors, such as the growth of the money supply and interest rate policy, as well as supply shocks (for example, spikes in commodity prices), can influence inflation. Inflation expectations also shape wage-setting and price-setting behavior.

Effects of infliacija extend across the economy. It reduces the real value of money and savings, redistributes income between borrowers and lenders, and can alter spending, saving, and investment decisions. High or unstable inflation creates uncertainty and may push firms to adjust prices more frequently. Central banks often aim to maintain price stability, commonly targeting a positive but low inflation rate, such as around 2% in the long run, through monetary policy.

Types of infliacija include creeping inflation (low and gradual), galloping inflation (rapid growth in prices), and hyperinflation (extremely high and accelerating prices). Inflation can be driven by demand-pull, cost-push, or built-in factors, or by external shocks.

Policy responses typically involve monetary tools like policy rate changes, open market operations, and, in some cases, fiscal measures to support price stability and anchor expectations.