The Federal Open Market Committee considers an inflation rate that increases annually by 2 percent to be a healthy indicator of price stability and maximum employment. A small level of inflation reduces the chance of har... More » Business & Finance Financial Calculations

The largest waves of increased inflation rates during the 20th century occurred after World War I and World War II. Another major increase in inflation happened from 1970 until the early '80s. More » World View Social Sciences Economics

As inflation occurs, the central bank is able to adjust interest rates, thus encouraging economic growth. Without adjusted interest rates, there would be little growth during times of inflation as people's purchasing pow... More »

The inflation rate calculated with the help of the gross domestic product, or GDP, deflator uses the price index that indicates how much of the GDP has changed in the previous year is based on changes in the price level.... More »

To curb inflation is to reduce the rate at which the value of currency goes down. When inflation rates are high, prices of goods tend to increase more quickly. Curbing inflation is therefore beneficial to a country's eco... More »

Inflation is measured by tracking numerous price indices and surveys that indicate how prices have changed for goods and services over time. Every month in the United States, the Bureau of Labor Statistics gathers data o... More » Business & Finance Financial Calculations

The Federal Open Market Committee meets eight times per year, which is approximately every six weeks, and sets the federal funds rate, according to the Federal Reserve. The Federal Open Market Committee adjusts the rate ... More » Business & Finance Financial Calculations