IndexInflationHow do we measure inflation?What causes inflation?Inflation rate in AfghanistanInflationInflation is a process of continuous increase in the price of most goods and services in a village. This does not necessarily mean that all prices increase. There are some goods, such as computers, whose price has actually decreased. Inflation can therefore be described as persistent and general; price increase. Inflation is usually expressed as the percentage increase in overall prices in a year. Say no to plagiarism. Get a tailor-made essay on "Why Violent Video Games Shouldn't Be Banned"? Get an original essay How do we measure inflation? Defining a basket of goods and services used by a "typical" customer, and then tracking 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 so-called consumer price index (CPI) is called the inflation rate. The consumer price index is a person's average spending or cost of living. What causes inflation? Demand-pull inflation – aggregate demand grows faster than aggregate supply (growth too fast); Cost inflation – rising oil prices result in higher costs; Devaluation – increase in the cost of imported goods, which also stimulates domestic demand; Rising wages – higher wages increase business costs and increase consumers' disposable income to spend more; Inflation expectations – cause workers to demand wage increases and businesses to raise prices. Chinese consumer prices rose 1.8% year-over-year in December 2017, following a 1.7% increase in November but slightly below the market consensus of a 1.9% increase . The cost of non-food products continued to increase, while the cost of food products decreased much less. The inflation rate in China averaged 5.29% from 1986 to 2017, reaching an all-time high of 28.40% in February 1989 and a record low of -2.20% in April 1999. The producer price index increased by 4.9% compared to the previous year. December 2017, compared to a 5.8% increase in the previous month while markets were estimating a 4.8% gain. For producer prices it was the 16th consecutive month of increase, but the minimum since November 2016. The costs of the means of production increased less (6.4% compared to 7.5% in November, i.e. extraction: 9, 1%, raw materials: 8.1% and processing: 5.5%). Prices also increased more slowly for consumer goods (0.5% from 0.6%, notably food production: 0.2%, clothing: 0.6% and everyday goods: 1.6%) . At the same time, prices of durable consumer goods fell by 0.2% (after a flat level in the previous five months). On a monthly basis, producer prices increased 0.8%, compared to a 0.5% increase in November. Please note: this is just an example. Get a custom paper from our expert writers now. Get a Custom Essay Afghanistan Inflation Rate The inflation rate in Afghanistan was recorded at 3.10% in November 2017. The inflation rate in Afghanistan averaged 4.15% from 2005 to 2017, reaching the historical high of 13.97% in April 2011 and the record low of -18.39% in May 2009. The consumer price index (CPI) is divided into two main groups: food products, which represent 61.3% of the total CPI, and non-food products making up the remaining 38.7%. The most important foods are: bread and cereals (28%), meat (6%), milk, cheese and (2%).).