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ПОЛИТИКА, ЭКОНОМИКА И ИННОВАЦИИ № 4 (51), 2023 УДК 336.748.12(100)
Мануджит Пабасара Сенаратна, студент международного медицинского института Курского государственного медицинского университета, Курск, Россия
Email: manuj ithsenarathna 13 @gmail. com
СПЕЦИФИКА ИНФЛЯЦИИ В РАЗНЫХ СТРАНАХ
Аннотация: в статье описывается специфика инфляции в разных странах, влияние инфляции на экономику страны, текущий уровень инфляции во всем мире.
Ключевые слова: инфляция, Индекс потребительских цен (ИПЦ), Индекс цен производителей (ИЦП), дефлятор валового внутреннего продукта (ВВП).
Manujith Pabasara Senarathna, student of the International Medical Institute, Kursk State Medical University, Kursk, Russia
Email: manuj ithsenarathna 13 @gmail .com
THE SPECIFIC OF INFLATION IN DIFFERENT COUNTRIES
Abstract: the article describes the specific of inflation in different countries, the effect of the inflation in a country, the current inflation rate around the world.
Keywords: шп1Мюп, Consumer Price Index (CPI), Producer Price Index (PPI), Gross Domestic Product (GDP) deflator
Inflation refers to the general increase in prices of goods and services in an economy over a period of time, typically measured as a percentage increase in the price level of a basket of goods and services consumed by households.
ПОЛИТИКА, ЭКОНОМИКА И ИННОВАЦИИ № 4 (51), 2023
Inflation can be caused by various factors, including an increase in the money supply, higher demand for goods and services than their available supply, cost-push factors such as rising input costs or taxes, or even expectations of future inflation. Inflation reduces the purchasing power of money over time, leading to a decline in the real value of savings, income, and wealth.
Central banks and governments typically use monetary and fiscal policies to try to keep inflation in check and maintain price stability in the economy. A low, stable rate of inflation is generally considered desirable as it promotes economic growth, investment, and job creation, while very high or unpredictable inflation can be detrimental to economic growth and stability [1].
Inflation is typically measured using a variety of economic indicators that track changes in the prices of goods and services over time. The most commonly used measures of inflation are:
1. Consumer Price Index (CPI): The CPI is a measure of the average price level of a basket of goods and services purchased by households. It is calculated by tracking the prices of a set of goods and services that are representative of the spending habits of the average consumer.
2. Producer Price Index (PPI): The PPI measures the average change in the prices of goods and services purchased by businesses at the wholesale level. It is often seen as a leading indicator of future inflationary pressures.
3. Gross Domestic Product (GDP) deflator: The GDP deflator measures the changes in prices of all goods and services produced within an economy. It is calculated by dividing nominal GDP (the total value of all goods and services produced) by real GDP (the total value of all goods and services produced adjusted for inflation).
4. Personal Consumption Expenditures (PCE) Price Index: The PCE Price Index is similar to the CPI but is considered to be a more accurate measure of inflation because it takes into account changes in consumer behavior and spending patterns over time.
ПОЛИТИКА, ЭКОНОМИКА И ИННОВАЦИИ № 4 (51), 2023
Each of these measures of inflation provides a slightly different perspective on price changes within an economy, and economists often use a combination of measures to get a more complete picture of inflationary pressures.
Inflation is a sustained increase in the general price level of goods and services in an economy over a period of time. The effect of inflation on a country's economy can be both positive and negative, depending on the extent and duration of the inflation [2].
Here are some of the effects of inflation in a country:
1. Reduces purchasing power: Inflation reduces the value of money, which reduces the purchasing power of individuals, businesses, and the government. This means that the same amount of money can buy fewer goods and services than before, leading to a decrease in living standards and a rise in the cost of living.
2. Increases cost of borrowing: Inflation can increase the cost of borrowing money, as lenders will demand higher interest rates to account for the reduced value of money over time.
3. Redistributes income: Inflation can have a redistributive effect on income, as the prices of different goods and services increase at different rates. This can benefit those who own assets that appreciate in value, but can be detrimental to those whose income does not keep up with inflation.
4. Reduces international competitiveness: High inflation can reduce a country's international competitiveness, as it increases the cost of exports and reduces the attractiveness of the country for foreign investment.
5. Can lead to economic instability: If inflation is high and unpredictable, it can lead to economic instability, as businesses and individuals may have difficulty planning and making decisions in such an environment. It can also lead to social and political instability if people feel that the government is not effectively managing the economy [4].
Overall, inflation can have wide-ranging and complex effects on a country's economy, and governments often try to manage inflation through a variety of policies, such as monetary policy and fiscal policy.
ПОЛИТИКА, ЭКОНОМИКА И ИННОВАЦИИ № 4 (51), 2023 As the table below shows, countless countries are navigating record-high levels of inflation. Some are even facing triple-digit inflation rates. Globally, Zimbabwe, Lebanon, and Venezuela have the highest rates in the world [3].
Table 1- Countries with highest inflation rates in 2022 [2]
Country Inflation Rate
Zimbabwe 269%
Lebanon 162%
Venezuela 156%
Syria 139%
Sudan 103%
Argentina 88%
Turkey 85.50%
Sri Lanka 66%
Iran 52.20%
Suriname 41.40%
Inflation is a complex phenomenon that affects different countries in different ways, depending on a variety of factors such as economic policies, global market forces, and domestic economic conditions. Here are some specific examples of inflation in different countries:
1. Venezuela: Inflation in Venezuela has been one of the highest in the world in recent years, with rates exceeding 10,000% in 2019. The primary driver of inflation in Venezuela has been a combination of political instability, economic mismanagement, and hyperinflationary monetary policies.
2. Zimbabwe: Zimbabwe has experienced hyperinflation several times in the past few decades, with inflation rates reaching as high as 79.6 billion percent in 2008. The main causes of inflation in Zimbabwe have been a lack of foreign currency reserves, political instability, and economic mismanagement.
3. Japan: Japan has experienced a prolonged period of low inflation, with rates remaining stubbornly below the government's target of 2% for several years. The main causes of Japan's low inflation have been a combination of demographic factors, weak demand, and a persistent deflationary mindset among consumers.
ПОЛИТИКА, ЭКОНОМИКА И ИННОВАЦИИ № 4 (51), 2023
4. Turkey: Turkey has experienced high inflation in recent years, with rates exceeding 20% in 2018 and 2019. The main causes of inflation in Turkey have been a combination of political instability, currency devaluation, and loose monetary policy.
5. United States: Inflation in the United States has been relatively low and stable in recent years, although there has been some concern about rising inflationary pressures in the wake of the COVID-19 pandemic. The main drivers of inflation in the US have been a combination of strong demand, supply chain disruptions, and government stimulus programs [1].
It is worth noting that inflation is a complex phenomenon that can be influenced by a wide range of factors, and the examples listed above are just a few of the many different ways in which inflation can manifest itself in different countries.
What are the countries have issue in inflation rate and what is the real situation with that situation?
There are many countries that have been experiencing issues with inflation rates in recent years, particularly in the wake of the COVID-19 pandemic. Some of the countries that have seen particularly high rates of inflation include:
1. Venezuela: Venezuela has been experiencing hyperinflation for several years now, with the inflation rate estimated to be over 2,000% in 2021.
2. Argentina: Argentina has struggled with inflation for many years, and the rate has been particularly high in recent years. In 2021, the inflation rate in Argentina was estimated to be around 50%.
3. Turkey: Turkey has also seen high inflation rates in recent years, with the rate estimated to be around 36% in 2021.
4. Brazil: Brazil has been experiencing rising inflation in recent years, with the rate estimated to be around 10% in 2021.
5. Russia: Russia has also seen rising inflation rates, with the rate estimated to be around 7% in 2021.
The situation with inflation in these countries can be quite complex, and there are many factors that can contribute to rising prices. In general, high inflation rates can
ПОЛИТИКА, ЭКОНОМИКА И ИННОВАЦИИ № 4 (51), 2023 be caused by a variety of factors, including government policies, changes in the global economy, and local market conditions.
In some cases, inflation can be driven by factors such as supply chain disruptions, which can lead to shortages of certain goods and services. Additionally, government policies such as excessive money printing or currency devaluation can also contribute to inflation.
Overall, high inflation rates can have significant impacts on the economy and on individuals' daily lives. They can make it more difficult for people to afford basic necessities, reduce the value of savings and investments, and create instability in financial markets [4].
Maintaining a good inflation rate is a crucial aspect of managing an economy. Here are some strategies that countries can adopt to maintain a good inflation rate:
1. Monetary Policy: Central banks can use monetary policy tools such as changing interest rates or reserve requirements to manage the money supply and influence inflation rates. A central bank may raise interest rates to slow down the growth of the money supply and reduce inflation, or lower interest rates to stimulate economic growth and increase inflation.
2. Fiscal Policy: Governments can also use fiscal policy measures, such as taxation and government spending, to influence the economy and inflation. By controlling government spending and taxation, governments can reduce the growth of the money supply and inflation.
3. Exchange Rate Policy: A country can also manage inflation by controlling its exchange rate. A lower exchange rate can help make exports more attractive, thus boosting economic activity, while a higher exchange rate can help reduce inflation by making imports cheaper.
4. Price Controls: Price controls may be used in certain situations to manage inflation by setting price limits on essential goods and services. However, this can have negative consequences, such as creating shortages and reducing the quality of goods and services.
ПОЛИТИКА, ЭКОНОМИКА И ИННОВАЦИИ № 4 (51), 2023
5. Economic Reforms: Finally, countries can adopt economic reforms to improve productivity, increase competition, and promote economic growth, which can help to reduce inflation over the long term.
Overall, maintaining a good inflation rate requires a careful balance of monetary and fiscal policies, exchange rate management, and economic reforms.
References
1. What is inflation https://www.investopedia.com/termsMnflation.asp
2. The countries with the highest inflation rate https://www.visualcapitalist.com/mapped-which-countries-have-the-highest-inflation/
3. The effect of the inflation in a country https://www.imf.org/en/Publications/fandd/issues/Series/Back-to-Basics/Inflation
4. The specific of inflation in different countries https: //data.worldbank.org/indicator/FP.CPI.TOTL .ZG
