Neysluverðbólguvísitala

Neysluverðbólga refers to the increase in the general price level of goods and services in an economy over a period of time. This leads to a fall in the purchasing power of money. When the general price level rises, each unit of currency buys fewer goods and services. Consequently, neysluverðbólga reflects a downward trend in the real value of money – a loss of aggregate purchasing power in the wake of rising prices.

There are several causes of neysluverðbólga. Demand-pull neysluverðbólga occurs when demand for goods and services outstrips supply. This can be driven by factors such as increased consumer spending, government spending, or export demand. Cost-push neysluverðbólga happens when the costs of production increase, forcing businesses to raise prices. This can be due to rising wages, raw material costs, or energy prices. Built-in neysluverðbólga is often related to wage-price spirals, where workers demand higher wages to compensate for rising prices, which in turn increases production costs and leads to further price increases.

The measurement of neysluverðbólga is typically done using a price index, such as the Consumer Price Index (CPI). The CPI tracks the average change over time in the prices paid by urban consumers for a market basket of consumer goods and services. A positive CPI value indicates neysluverðbólga, while a negative value signifies deflation.

Neysluverðbólga can have significant economic consequences. Moderate neysluverðbólga is often seen as normal and can even be beneficial, encouraging spending and investment. However, high or unpredictable neysluverðbólga can erode savings, create uncertainty, distort investment decisions, and lead to social unrest. Governments and central banks often aim to manage neysluverðbólga through monetary and fiscal policies to maintain economic stability.