INFLATION

Before starting this article, I want to ask if you guys have never heard the term inflation. The term inflation we've heard. Starting from the first days of high school , we have heard the word inflation . In fact , when I was shopping in the market , the sellers of both mother and father call prices rise as inflation rises . It makes me amazed because the terms of the economy is very familiar in the midst of the general public.

The question we are as follows: What exactly is the meaning of inflation? What are the indicators of inflation? What factors that cause inflation?

Inflation can be interpreted as an increase in prices in general and continuously. The bottom line of this sentence is rising prices in general and continuously. This is the main indicator of inflation. The increase in the price of one or two things can not be said that the increase in inflation unless extended (resulting in price increases in other goods).

What indicators are used for inflation. The indicator is the Consumer Price Index ( CPI ). CPI change from time to time indicates the movement of the price of a package of goods and services consumed by the public . Since July 2008, a package of goods and services in the CPI basket has been done on the basis of Cost of Living Survey ( CLS ) in 2007 conducted by the Central Statistics Agency (BPS). Then, BPS will monitor price developments of goods and services on a monthly basis in several cities , in traditional and modern markets for some types of goods / services in each city.