Economics

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  • Topic: Inflation, Price index, Consumer price index
  • Pages : 8 (2181 words )
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  • Published : February 6, 2013
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Angeles University Foundation
MacArthur Highway, Angeles City

Health Economics

Inflation Rate as a Health Economic Indicator

Garcia, Juana Sophiya Ariza
Lacap, Jonnabelle
Lacsamana, Christoper Jel
Lagman, Benjamin
Lalu, Lyka
Mancenon, Lisel
Mandap, Paula Bianca
Mande, Chanell
abong, Ergs

BSMT2-E

Mrs. Nicole Rivera
Inflation Rate as a Health Economic Indicator

Definition of Health Economic Indicator

A health economic indicator is a statistics about the production, distribution, and consumption of goods and services for health care. In include various indices, earnings reports, and economic summaries and it allows analysis of economic performance and of future performance.

As a key statistics of the economy, an indicator reveals the direction the economy is heading in; for example, the unemployment rate and the inflation rate. It is a piece of economic data, usually of macroeconomic scale, that is used by investors to interpret current or future investment possibilities and judge the overall health of an economy. Economic indicators can potentially be anything the investor chooses, but specific pieces of data released by government and non-profit organizations have become widely followed. These include: * The Consumer Price Index (CPI)

* Gross Domestic Product (GDP)
* Unemployment figures
* The price of crude oil

An economic indicator is only useful if one interprets it correctly. History has shown strong correlations between economic growth (as measured by GDP) and corporate profit growth. However, determining whether a specific company will grow its earnings based on one indicator is nearly impossible. Indicators give us signs along the road, but the best investors will utilize many economic indicators, looking for patterns and verifications within different sets of data. Most economic indicators have a specific schedule for release, allowing investors to prepare for and plan on seeing certain information at certain times of the month and year.

Definition of Inflation Rate

Inflation is a rise in the general level of prices. A decline in overall prices, which occurs less frequently, is known as deflation.

Inflation Rate is a measure of how fast a currency loses its value. That is, the inflation rate measures how fast prices for goods and services rise over time, or how much less one unit of currency buys now compared to one unit of currency at a given time in the past.

Because the prices of particular goods and services, such as food, housing, transportation, clothing, medical care, energy, equipment, containers, lumber, chemicals, and metals, rise and fall at different rates, price measures that include different items and combine the items in different ways show different overall rates of price change. And because the five price measures cover different items and are constructed using different methodologies, they show different rates of price change.

In addition, prices of food and energy are highly volatile due to the effect of unpredictable weather conditions on crop harvests and the uncertainty of the Organization of Petroleum Exporting Countries as an effective cartel in managing oil production and prices. Movements in the prices of food and energy sometimes diverge noticeably from those of other items. Because food and energy prices are linked to vagaries like the weather and OPEC, economists have developed a concept called core inflation or the underlying rate of inflation which refers to price movements of goods and services except for food and energy. These measures are regularly published for the consumer price index and the producer price indexes. They provide a gauge of price pressures in the economy that are attributable to macroeconomic forces, rather than to the special factors cited earlier.

Various terms are used to distinguish differing rates of price change. Overall, price increases are referred to as...
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