Table of ContentsInflationHow do we measure inflation?What are the causes of inflation?Inflation rate in AfghanistanInflationInflation is a process of continuous increase in the price of most goods and services in a country. This does not necessarily mean that all prices are increasing. Some products, such as computers, have seen their prices drop. Inflation can therefore be described as persistent and general; increase in prices. Inflation is generally expressed as a percentage increase in overall prices over a year. Say no to plagiarism. Get a tailor-made essay on “Why violent video games should not be banned”? Get an original essay How do we measure inflation? Define a basket of goods and services used by a “typical” customer, then track the cost of the basket, is the measure of inflation. In the twelve months to January 2007, the cost of the basket increased by 10% (as an example). This 10% increase in the Consumer Price Index (CPI) is called the inflation rate. The CPI is the average expenditure or cost of living for a person. What causes inflation? Demand-pull inflation – aggregate demand increases faster than aggregate supply (growing too fast); – the increase in the cost of imported goods also stimulates domestic demand; prices rose 1.8% year-on-year in December 2017, following a 1.7% rise in November, but slightly below the market consensus of a 1.9% gain. The cost of non-food items has continued to rise, while the cost of food has fallen much less. China's inflation rate averaged 5.29 percent between 1986 and 2017, reaching an all-time high of 28.40 percent in February 1989 and a record low of -2.20 percent in April 1999. The producer price index increased by 4.9 percent compared to the previous year. December 2017, compared to an increase of 5.8 percent the previous month when markets estimated a gain of 4.8 percent. This is the 16th consecutive month of increase in producer prices, but the lowest since November 2016. Costs increased less for the means of production (6.4 percent compared to 7.5 percent in November, at namely extraction: 9.1 percent, raw materials: 8.1 percent and processing: 5.5 percent). Additionally, prices increased at a slower rate for consumer goods (0.5 percent versus 0.6 percent, i.e. food production: 0.2 percent, clothing: 0.6 percent). cent and goods of daily use: 1.6 percent). At the same time, prices of durable consumer goods decreased by 0.2 percent (after a stable value over the previous five months). On a monthly basis, producer prices rose 0.8 percent, compared to a 0.5 percent gain in November. Keep in mind: this is just a sample. Get a personalized article from our expert writers now. Get a Custom Essay Inflation Rate in Afghanistan The inflation rate in Afghanistan was recorded at 3.10 percent in November 2017. The inflation rate in Afghanistan averaged 4.15 percent from 2005 to 2017 , reaching an all-time high of 13.97 percent in April 2011 and a record low of -18.39 percent in May 2009. In Afghanistan, the Consumer Price Index (CPI) is divided into two main groups : food products, accounting for 61.3 percent of the total CPI, and non-food products, accounting for the remaining 38.7 percent. The most important food products are: bread and cereals (28 percent), meat (6 percent), milk, cheese and eggs (5.6 percent) and oils and fats (5. 3 percent). Items not).).