Location via proxy:   [ UP ]  
[Report a bug]   [Manage cookies]                
Scribd Logo
Upload

Welcome to Scribd!

  • 14 views

    Assignment 3 Inflation

    Uploaded by

    Marta Pacilli
    This document discusses inflation and deflation in Ireland from 2010 to 2020. It provides historical data showing inflation in Ireland ranged from -0.922% in 2010 to -0.335% in 2020. The document also notes that Ireland has experienced 11 consecutive months of deflation as of February 2021, with the consumer price index declining 0.4% year-over-year that month. Core inflation in Ireland, which excludes volatile food and energy prices, has averaged 2.52% from 1983 to 2021.

    Copyright:

    © All Rights Reserved
    Download as DOCX, PDF, TXT or read online from Scribd

    Assignment 3 Inflation

    Uploaded by

    Marta Pacilli
    14 views3 pages
    This document discusses inflation and deflation in Ireland from 2010 to 2020. It provides historical data showing inflation in Ireland ranged from -0.922% in 2010 to -0.335% in 2020. The document also notes that Ireland has experienced 11 consecutive months of deflation as of February 2021, with the consumer price index declining 0.4% year-over-year that month. Core inflation in Ireland, which excludes volatile food and energy prices, has averaged 2.52% from 1983 to 2021.

    Copyright

    © © All Rights Reserved

    Available Formats

    DOCX, PDF, TXT or read online from Scribd

    Did you find this document useful?

    Is this content inappropriate?

    This document discusses inflation and deflation in Ireland from 2010 to 2020. It provides historical data showing inflation in Ireland ranged from -0.922% in 2010 to -0.335% in 2020. The document also notes that Ireland has experienced 11 consecutive months of deflation as of February 2021, with the consumer price index declining 0.4% year-over-year that month. Core inflation in Ireland, which excludes volatile food and energy prices, has averaged 2.52% from 1983 to 2021.

    Copyright:

    © All Rights Reserved
    Download as DOCX, PDF, TXT or read online from Scribd
    Download as docx, pdf, or txt
    14 views3 pages

    Assignment 3 Inflation

    Uploaded by

    Marta Pacilli
    This document discusses inflation and deflation in Ireland from 2010 to 2020. It provides historical data showing inflation in Ireland ranged from -0.922% in 2010 to -0.335% in 2020. The document also notes that Ireland has experienced 11 consecutive months of deflation as of February 2021, with the consumer price index declining 0.4% year-over-year that month. Core inflation in Ireland, which excludes volatile food and energy prices, has averaged 2.52% from 1983 to 2021.

    Copyright:

    © All Rights Reserved
    Download as DOCX, PDF, TXT or read online from Scribd
    Download as docx, pdf, or txt
    of 3

    Ireland

    Ireland’s levels of Inflation

    Marta Pacilli and Abdulaziz Saleh F Saad


    GBSB Global Business School Madrid

    Irish Consumer Price Inflation and Deflation

    Inflation indicates a generalized and continuous growth of prices over time. It is a fundamental
    indicator because the price level affects the purchasing power of families, the general trend of the
    economy and the orientation of the monetary policies of central banks. Inflation as measured by the
    consumer price index reflects the annual percentage change in the cost to the average consumer of
    acquiring a basket of goods and services that may be fixed or changed at specified intervals, such as
    yearly.
    This page highlights the historical overview of inflation in Ireland, from -0.922% in 2010 to -
    0.335% in 2020.

    The term deflation, on the other hand, indicates a decline in the general price level. Deflation is
    therefore the opposite of inflation. Deflation itself is generally a negative phenomenon, but there are
    types of "positive" deflation and favorable aspects of deflation.
    A decline in the general price level very often results from a negative growth situation in which the
    demand for goods and services is contracting. This prompts the companies themselves to try to sell
    their products at lower prices, in the hopes of stimulating consumer demand and response.
    As a result, companies sell their products at a lower price and therefore experience a decrease in
    turnover. To balance this contraction in turnover, companies try to reduce the costs for raw
    1
    materials and services deriving from other companies, to cut the cost of labor, to squeeze financing
    from banks. These interventions, in turn, tend to compress the aggregate demand for goods and
    services, aggravating the situation and bringing new deflationary pressures.
    The rise in unemployment resulting from the cut in labor costs, for example, will force the new
    unemployed to reduce their expenses, negatively affecting demand. However, deflation also tends
    to correspond to an increase in savings which can lay the foundations for a healthy economic
    recovery.
    According to the Central Statistics Office of Dublin, the consumer price index in Ireland marked a
    deflation of 0.4% per year in February 2021, worsening compared to the decline of 0.2% in January
    2021 (1.0 in December 2020), in the 11th consecutive month of contraction. On a sequential basis,
    the consumer price index rose by 0.4% against the previous 0.1% (0.3% in November and
    December). The harmonized price index recorded a deflation of 0.4% per year (0.3% monthly
    growth).

    Irish Core Inflation

    Core inflation is the term used to indicate the measure of the average price increase by excluding
    from the count the goods that are typically subject to strong price volatility, especially those related
    to energy and food.
    Core Inflation Rate in Ireland averaged 2.52 percent from 1983 until 2021, reaching an all-time
    high of 10.20 percent in January of 1984 and a record low of -6.10 percent in October of 2009.

    References

    Inflation, consumer prices (annual %) – Ireland, The World Bank Data,


    https://data.worldbank.org/indicator/FP.CPI.TOTL.ZG?end=2020&locations=IE&start=2010

    (07 February 2020), Cos’è l’inflazione? Significato, cause e calcolo dei tassi di inflazione, Borsa
    Italiana, https://www.borsaitaliana.it/notizie/sotto-la-lente/inflazione.htm

    (12 March 2021), Irlanda: in febbraio prezzi consumo in deflazione dello 0,4%, Trend Online,
    https://www.trend-online.com/borsa/irlandain-febbraio-prezzi-consumo-in-deflazione-dello-0-4--
    408188/

    2
    Ireland Core Inflation rate, Trading Economics, https://tradingeconomics.com/ireland/core-
    inflation-rate

    You might also like