Inflation

21 January 2024, 19:09

Inflation is an increase in the general (average) level of prices over time. It is characterized by the overall inflation index - the index of change in the general (average) level of prices in a country and the levels of prices for individual types of goods, services and works, measured from the initial moment - the moment of preparation of project documentation <*>

Source: "Methodological Recommendations on Assessing the Efficiency of Investment Projects" (approved by the Ministry of Economic Development of Russia, the Ministry of Finance of Russia, and the State Construction Committee of Russia on June 21, 1999 No. VK 477)

INFLATION - depreciation of paper money and non-cash monetary means, accompanied by rising prices for goods and services in the economy, associated with the malfunctioning of the country's monetary and credit system (non-payments, unproductive government expenditures, inefficient credit, taxation systems, etc.), structural disproportions, violation of price relationships for individual goods and services, as well as a number of other factors. By rates, it is divided into creeping inflation, characteristic of industrially developed countries (growth rate varies according to different estimates from 3 to 10% per year); galloping inflation - for developing countries and transition economies (from 10-50% to 200-300% per year); hyperinflation (at rates exceeding 50% per month, if they persist in the economy for six months or more). Statistics measures the level of inflation using a system of price indices, the most important components of which are the GDP deflator index and the consumer price index. In modern conditions, an increase in consumer prices is interpreted as inflation in the consumer sector

Source: Order of Rosstat dated 30.12.2005 No. 110 (as amended on 28.08.2012) "On Approval of the 'Methodological Guidelines for Monitoring Consumer Prices for Goods and Services and Calculating Consumer Price Indices'"

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