Inflation Fadil Almohsen 200901348

Outline Definition of inflation How inflation is measured Causes of inflation The inflation rate in Saudi Arabia Conclusion

Definition of Inflation The rate at which the general level of prices for goods and services is rising, and, subsequently, purchasing power is falling

How inflation is measured Inflation is measured by comparing two sets of goods at two points in time, and computing the increase in cost not reflected by an increase in quality. There are many measures of inflation depending on specific circumstances.

How inflation is measured CPI: which measures consumer prices. GDP deflator: which measures inflation in the whole of the domestic economy.

Causes of inflation Natural factors like unfavorable weather conditions. Man-made problems which contribute to the rapid increase in prices. Other inflation causes are: increases of the population, rising prices of imported goods, and increase in wages.

The inflation rate in Saudi Arabia Inflation rate refers to a general rise in prices measured against a standard level of purchasing power. The inflation rate in Saudi Arabia was recorded at 3.8 percent in October of 2012. Historically, from 2003 until 2012, Saudi Arabia Inflation Rate averaged 3.8 Percent reaching an all-time high of 11.1 Percent in July of 2008 and a record low of 0.0 Percent in September of 2004.

The inflation rate in Saudi Arabia

Conclusion Definition of Inflation. How inflation is measured: CPI and GDP deflator. Causes of inflation: Natural factors, man-made problems, increases of the population, rising prices of imported goods, and increase in wages. The inflation rate in Saudi Arabia which was recorded at 3.8 percent in October of 2012.

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