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Q: drop in inflation rate from 7.5% to 6.5%.If actual inflation comes in at 7%,how will the market interest rate react, up or down?
there is a drop of inflation from 7.5% to 6.5%,if the actual inflaction comes in at 7% , and the market percioeves a deviation, how will the market interest rate react, up or down?
-- Thule, SA 06/01/09
 
A:

Source: as above

Inflation is an increase in the overall level of prices. Because rising prices reduce the buying power of money, inflation can also be defined as a decline in the value of money.The rate of inflation is a measure of how fast prices are rising. It is computed as the percentage increase in the level of prices between two time periods.....www.seattle.gov


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