What is the meaning of inflation ?

Introduction of InflationInflation Inflation Disaggregation definition I Importance I Price StabilityIn simple terms inflation is defined as rising prices in general and continuous. The increase in the price of one or two items alone can not be called unless the inflation increase was widespread (or lead to price increases) in other articles. The opposite of inflation is called deflation.Indicators are often used to measure the rate of inflation is the Consumer Price Index (CPI). CPI change from time to time show the price movement of a package of goods and services consumed by the public. Since July 2008, the package of goods and services in the CPI basket has been done on the basis of Cost of Living Survey (SBH) in 2007 conducted by the Central Statistics Agency (BPS). Then, the BPS will monitor the price movement of goods and services on a monthly basis in several cities, the traditional and the modern market for some types of goods / services in each city.Other inflation indicators based on international best practice include:

    Wholesale Price Index (WPI). Wholesale prices of a commodity is the price of a transaction that occurs between the seller / wholesaler first with buyer / trader the next big market in large numbers on the first of a commodity. [Further details on the WPI web site can be viewed on the Central Bureau of Statistics www.bps.go.id]
    Gross Domestic Product Deflator (GDP) describes the measurement of the final goods price level (final goods) and services produced within an economy (country). Generated by dividing the GDP deflator of GDP on the basis of nominal prices to GDP at constant prices.Grouping of InflationInflation as measured by the CPI in Indonesia are grouped into 7 groups of expenditure (based on the Classification of individual consumption by purpose - COICOP), namely:

    Food group
    Group Food, Beverage, and Tobacco
    Housing Group
    Clothing Group
    Health groups
    Group Education and Sports
    Transport and Communications group.