GO
Loading...

Inflation: CNBC Explains

In a good economy, gradual inflation is considered a good thing, but in tougher economic times, too much inflation is a serious problem. Simply put, inflation occurs when a currency has reduced buying power for goods and services compared to the past. How is inflation measured? What is its impact on the average person? Salman Khan of the Khan Academy explains in a simplified example.

From the first video, you’ll understand:
- The goods and services that go into a consumer price index \(CPI\) calculation
- The effect of a money supply increase on inflation



From the second video, you’ll understand:
- The different components of CPI data
- What “seasonally adjusted” means for monthly inflation numbers

Featured

Contact CNBC Explains

  • CNBC NEWSLETTERS

    Get the best of CNBC in your inbox

    › Learn More

Latest Special Reports

  • To kick off our year-long anniversary, we created a list of top leaders, icons and rebels.

  • An era of innovation dominated by secretive corporate labs is ending. Time for you to help crowdfund the future.

  • CNBC and Institutional Investor host the 4th Annual Delivering Alpha Conference.

Central Banking Explained

Corporate Accounting Explained