Price stability and inflation (Cenová stabilita a inflácia)

Characteristics of price stability
Price stability is a relative stability of prices. This price stability is given in defined currency and defined time.
The main indicator of price stability is an inflation.
Inflation is an economical phenomenon which is characterised by increased prices of products and services and decreased value of money.
Prices include these products and services which a national economy is buying and selling now.
Increased price of one product cans cause an increased price of next product.
Example of this phenomenom
Weak crop of wheat cans cause increased price of bakery products, cakes and bread.
The aim of measuring of inflation
The aim of measuring of inflation is analyse of total depreciation of money.
The next aims of measuring of inflation are :
1. Impact for economical development of given state
2. Changed behaviour of consumers because of increased prices of products and services
Rate of inflation is measured by index of consumer`s prices and price`s index of producer.
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