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Economics

Inflation

The rate at which prices rise across the economy over time.

In depth

Measured by indices like CPI (consumer prices) and PPI (producer prices). Most central banks target around 2% inflation. Hyperinflation (50%+ monthly) destroys economies; deflation (negative inflation) discourages spending and investment. Inflation erodes purchasing power and the real value of bonds and cash.

Frequently asked about Inflation

What is Inflation?

The rate at which prices rise across the economy over time. Measured by indices like CPI (consumer prices) and PPI (producer prices). Most central banks target around 2% inflation. Hyperinflation (50%+ monthly) destroys economies; deflation (negative inflation) discourages spending and investment. Inflation erodes purchasing power and the real value of bonds and cash.

Why does Inflation matter for investors?

In economics, Inflation is one of the building blocks investors use to compare opportunities and assess risk. Understanding it helps you read research notes, earnings reports, and market commentary without getting lost in jargon.

How is Inflation used in practice?

Measured by indices like CPI (consumer prices) and PPI (producer prices). Most central banks target around 2% inflation.

Recent news mentioning Inflation

Colombia Inflation Rises in April, Raising Odds of Rate Hike Resume

The Quick Take * Colombian inflation accelerated in April, moving further from Banco de la República's official target * No market price reaction data available; rate hike expectations likely pressuring Colombian peso and local bonds * The uptick follows an unexpected rate pause in late April, putting the central bank's credibility under scrutiny * Banco de la República may need to resume interest rate hikes at upcoming policy meetings to rein in inflation * Broader EM central bank diverge

May 13, 2026

Fed's Daly: Inflation Expectations Stable Despite Energy Price Surge

The Quick Take * Fed's Mary Daly confirms medium- and long-term inflation expectations remain anchored despite rising energy prices * No market price movement data cited; Daly characterised current Fed monetary policy as 'slightly restrictive' * Daly reaffirmed Fed's commitment to 2% inflation target, signalling no imminent policy pivot * A resolution to the US-Iran conflict could further ease inflationary pressures, per Daly's remarks * Stable US inflation expectations may support risk ap

May 11, 2026

SE Asia inflation wave lifts rate-hike odds in Vietnam and Philippines

The Quick Take * Philippines CPI jumped to a 3-year high, set to average above 8% in Q2 2026 — ING * Vietnam inflation is accelerating above its official target, per DBS Group Research * DBS economist Chua Han Teng expects the SBV to turn more hawkish; ING flags BSP hike risks * Both central banks — SBV and BSP — face mounting pressure to tighten monetary policy * Broad-based SE Asia inflation surge signals regional policy divergence from global easing trend Synthesized from 2 sources — f

May 8, 2026

ECB's Villeroy: Oil-Driven Inflation Insufficient to Justify Rate Hike

The Quick Take * Outgoing ECB Governing Council member Villeroy stated rising oil prices have not sufficiently impacted inflation to warrant a rate hike * No market price movement data cited in articles; signal is dovish, implying ECB rate hold stance remains intact * Villeroy's comments represent institutional ECB guidance, suggesting majority council view leans against near-term tightening * With Villeroy departing the Governing Council, focus shifts to remaining members' stance ahead of

May 8, 2026

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