Difference between Inflation and Recession. Flexible terms & rates. Unfortunately for many of us, most things are just a lot more expensive than they used to be. But there are three typical causes for inflation: demand-pull, cost-push, and built-in. Australia's wage-setting institutions in the 1970s were very different from today's. When inflation began to . And if the Federal Reserve takes action in the form of more rate hikes to curb rising inflation, theres a risk that the move could help trigger a recession. In comparison, a recession is defined as a negative gross domestic product. Can the Federal Reserve keep raising interest rates and defeat the nation's worst bout of inflation in 40 years without causing a recession? The over-funded life insurance aims to duplicate traditional banks processes to build your banks value. A recession happens when the economy's inflation-adjusted GDP has declined for two or more consecutive quarters. All that happened was that the rate of inflation fell slightly from around 3% to around 2%. A whole life policy is an incredible asset because it gives you lifelong coverage and an opportunity to build cash value. Feeling 'bumfuzzled' or have the 'collywobbles'? The central bank should adopt steps to curb inflation through its monetary policies, in which it is tasked with determining the rate and extent of money supply expansion. Once a saver, always a saver: Warren Buffett says generational wealth isnt what it used to be in his annual letter Subprime auto lender folds as more Americans fall behind on car payments, CA Notice at Collection and Privacy Notice, Do Not Sell/Share My Personal Information. Those factors mean there is less demand for goods and services, which can further hurt the economy. All rights reserved. Here are the crucial differences between now and then. Put simply, inflation is what happens when the prices of goods and services are increasing. If youve been watching the news lately, you might be more that a little concerned about the U.S. economy. In an inflationary environment, while prices are increasing, your wage or salary may not necessarily be increasing to keep pace. A recession is the opposite of inflation since the economy will move at a slower pace, and there will be a decline in economic activity. All Rights Reserved. The Great Depression took place in 1929-1930, was triggered with the major fall in the stock indices and had a huge and long-lasting impact on the US as well as the global economy as it continued for almost a decade. It is an economic phase of business stagnation resulting in a financial crisis for the entire economy. High inflation came from the oil-supply shock, which also caused a recession; and the recession, in turn, drove unemployment higher. 2023 Forbes Media LLC. A recession is a significant, widespread, and overall decrease in economic activities. If inflation gets out of control, everyone feels poorer. It can be difficult to decide which is worse for the economy: inflation or recession. And if the Fed is able to bring down inflation relatively soon, a contracting economy might not be as bad as it now seems to be. 2023 The Associated Press. Such signs of resilience raised hopes that a recession could be avoided even if the Fed keeps tightening credit and makes mortgages, auto loans, credit card borrowing and many corporate loans increasingly expensive. "History is useful, but it can only tell us so much, particularly in situations without historical precedent," Jefferson said. While they are all different, they [] A recession is described as a time of high unemployment rate, a fall in the price of assets, and decreasing cost of commodities that cause low consumer confidence in the economy. The unemployment rate skyrocketed amid a recession, putting pressure on the government to cater to jobless citizens who might be plunged into poverty by the prevailing economic conditions. Inflation is most often measured with the Consumer Price Index (CPI), which monitors the price for certain goods and services over time. There are three broad types of inflation: demand-pull inflation, cost-push inflation, and built-in inflation. This is because: Firms have unsold goods. To fight against it, the monetary authority (such as central banks) takes specific actions to manage the money supply and credit to keep inflation at an optimal level and keep the economy running without problems. A "recession" is a period of time in which the level of economic activity drops generally. The NBER uses monthly data to regulate when a peak or trough has occurred. However, this condition does not benefit those who hoard cash because of the declining value of the currency. Your email address will not be published. The economy as a whole has slowed down. Recessions can also be more localized, while depressions can have global reach. CFA And Chartered Financial Analyst Are Registered Trademarks Owned By CFA Institute. It occurs as a result of low money supply in the economy where there are insufficient funds to create demand for goods and services to match the supply level. An inflationary depression is potentially worse because the inflation (money-supply growth) leads to . You will be your own bank and have unlimited access to it. The balance between these two economic conditions, opposite sides of the same. If its a mild recession, most people probably wont be worse off. A recession is a sustained period of weak or negative growth in real GDP (output) accompanied by a significant rise in the unemployment rate. F ederal Reserve Chair Jerome Powell is facing an increasingly grim calculus after yet another hot inflation reading last week: He probably has to push the economy into . Inflation is when prices rise and the value of money falls, a recession is when there is a decrease in economic activity, and economic depression is when the economy experiences a prolonged period of low activity. But this year, the cost of lemons and sugar has increased to $10. There are drops in economic activity, high unemployment rates, and the stock market may be heading in an unfavorable direction. The central banks introduce new monetary policies or amend existing ones to control the economy. In contrast to inflation, deflation indicates a general price decline when the inflation rate drops below 0%. Offers may be subject to change without notice. Too much deflation can also lead to recession. Inflation and recession often co-exist. Its evident that inflation isnt a positive effect. But by understanding the differences between these two conditions to make informed decisions about how to manage your finances and investment portfolio during times of rising inflation or a recession. High inflation rates can indicate an impending recession, as businesses react to higher costs by reducing production and increasing prices. In our developed world, we use more commodities than ever before. A Recession is where you tighten your belt; a Depression is when you havent any belt to tighten, and a Panic is when you have lost your pants. The Ephraim Enterprise (Ephraim, UT), 21 Jan. 1949. It is measured by the difference between the Wholesale Price Index (WPI) and the Consumer Price Index (CPI). The National Bureau of Economic Research (NBER) is the national source for measuring the degree of the business cycle. One of the most important differences between the coming -- actually, "current" is a more appropriate word since it has probably already begun -- great depression and the 1930-1945 episode is that today's version is likely to be inflationary. The US suffered many recessions, notably the financial crisis of 2008. Affordable solution to train a team and make them project ready. Terms & Conditions. Inflation makes the economy barrel forward at full speed, sometimes uncontrollably, leading to price surges. Visit our, Half of Gen Z Willing to Take Short-term Hits for a Long-term Sustainable Gain, WHO Issues Alarm Over Marburg Virus Outbreak in Ghana, BRICS Summit: Ukrainian Elephant in the room. Doing so would make a recession later this year more likely. Kat Tretina is a freelance writer based in Orlando, FL. Stagflation or recession-inflation is a situation in which the inflation rate is high, the economic growth rate slows, and unemployment remains steadily high[Source]. Movements along the SRPC correspond to . Differences between Recession and Inflation Definition Recession refers to an overall drop in economic activity as a result of a drop in the Gross Domestic Product for two consecutive quarters. The estimates between the lowest five responses and the highest five responses for this year range from -1.3% to 1.9% in 2023. It is considered a balanced approach to keep the inflation value in an optimum range. However, the Feds actions to battle against inflation have increased the recession fears are beginning to mount. Generally, when the economy shrinks for six months or more, its considered a recession. You will be ready to become your own bank in just one hour! In comparison, today's global inflation is only recently above pre-pandemic levels, since mid-2021 (at 5% on average in 2021-22 and 7% in March 2022). Editorial Note: We earn a commission from partner links on Forbes Advisor. By continuing to use this website you are giving consent to cookies being used. A mild recession that manages to hold on to low unemployment would spare most workers from layoffs. A recession occurs when an economy experiences continuously low economic growth as a measure of the country's GDP. As an example, according to the National Bureau of Economic Research (NBER), recession means a period of minimum of more than a few consecutive months with significant economic decline. The security and privacy policies of the site may differ from our own. And neither Ronald Reagan nor Harry Truman was responsible for the joke about 'When your neighbor loses his job its a recession; its a depression when you lose yours.' A recession is a significant decline in economic activity and is officially described as two consecutive quarters of negative economic growth. When inflation soars, as it has for the past two years, the Fed typically responds by raising interest rates, often aggressively, to try to cool the economy and slow price increases. Gagnon said he is not yet sure that a recession is a certainty, joining other economists who have said the same, and that if one does hit, chances are favoring a less severe outcome. We make use of First and third party cookies to improve our user experience. From rising inflation to recession fears, there is a lot of talk about negative economic conditions. CONTENTS 1. Measure Inflation is a measure of the gradual, broad increase in prices throughout the economy. Using the historical data, the authors project . The latest evidence of price acceleration makes it more likely that the Fed will need to do more to defeat high inflation. The main reasons are: Inflation is a rise in the general level of prices. Recessions are measured in terms of their impact on GDP. Please enter valid email address to continue. Those trends raise the possibility that the Fed's policymakers will decide they must raise rates further than they've previously projected and keep them higher for longer to try to bring inflation down to their 2% target. Where inflation is seen as an unavoidable reality associated with every economy, nations go out of their way to avoid a recession. We do not provide and are not responsible for any content or security measures on the linked website. Inflation and recession are important economic concepts, but what do they really mean? But it becomes a problem if the inflation rate gets too high. Employees may then demand a higher wage, and the cycle may continue. Lehmann Brothers collapsed when the housing bubble burstthe stock market crashed. Economists often characterize a recession as an economic decrease starting at the peak of the growth that preceded it and ending at the low point of the consequent downturn. Inflation influences everyone somehow, especially people with fixed incomes like pensioners. She added, though, that she's "well-aware of the many risks and uncertainties" now surrounding the economy. We may not be able to predict the long-term effects of economic cycles like contraction, peak, expansion, and trough, even if we experience many of them. During a recession, unemployment rates increase, wages may stagnate and people usually have less money to spend. Population growth, hoarding, increased public spending, indirect taxes, and international debt. The most famous depression in U.S. history was the Great Depression. Differences Definition Inflation is an increase in the price of products and services over time in an economy. Prices rose 5% in January from a year earlier, according to the Fed's preferred measure. In contrast, inflation refers to a general rise in prices throughout an economy over time. 1998-2023 Academy Bank, N.A. The real refers to the effects of inflation stripped out, which measures everything businesses and individuals in the US produce. But it's not easy to find a consensus definition of what a recession is. During inflation, the economy moves faster, with prices being hiked at an uncontrollable rate and a higher cost of living for the average consumer. That's about all the two periods have in common. Wages tend to rise naturally during inflation to compensate for this, since inflation is a byproduct of a surge in demand, meaning economic growth, but people with fixed incomes like pensioners have no such luck in that case. Higher costs can be imposed due to high and variable inflation rates. A common rule of thumb is that a recession is defined by a countrys Gross Domestic Product, or GDP decreasing for at least two consecutive fiscal quarters. There is no need to deal with banking fees, high-interest rates, and waiting for loans. Another common one is the Coronavirus Recession that has affected all countries, especially the developing nations. Inflation is the increase in the market price of goods and services. Trade wars, fiscal austerity, interest rates rise, asset price fall, and a shift in consumer behavior. Inflation often happens over a long period of time, which means it can be tough to pinpoint its exact cause. Many economists point to a combination of other factors to determine whether a recession is nigh. High prices can lead to a slowdown in economic growth, leading to fewer jobs. While we can probably all agree that neither of these scenarios bodes well for the expansion of the economy, the following paragraphs will demonstrate that the causes and consequences of these two scenarios are diverse. Depression is considered the most intense form of economic crisis. (Note: The conditions in a built-in inflation environment usually start with either demand-pull or cost-push inflation.). As Joseph Gagnon, a former director on the Federal Reserve Board and a senior fellow at the Peterson Institute for International Economics, said: Inflation feels very bad because your money is worth less, while a recession feels very bad because the economy is creating fewer jobs.. Prices jumped 0.6% from December to January, the biggest monthly increase since June. When inflation rises, people and businesses must spend excessively to operate. One of the most significant is that it distorts relative prices, wages, and rates of return along with its own price increase. Lets take a closer look at their differences. According to the Economic Policy Institute, economists opinions vary on which is worse for an economy, a recession or rising inflation. We think the best thing you can do to secure your finances is to start the Infinite Banking process. We suggest you watch our free masterclass to ensure financial stability even during economic uncertainty. Your financial situation is unique and the products and services we review may not be right for your circumstances. David and his four friends are huge cinema lovers. And, according to the International Monetary Fund (IMF), 21 advanced economies around the world experienced 122 recessions between 1960-2007. 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A recession occurs when your country's economy is not performing well. Phillips analyzed 60 years of British data and found the tradeoff between unemployment and inflation described in . How every letter can be (annoyingly) silent, Helping you navigate the linguistic road ahead. Inflation and recession are two economic states that tend to work against each other. Inflation could even push some households which have recently left poverty right back into it. But now the movie ticket prices have increased; one ticket costs $18. Throughout U.S. history, there have been 50 recessions. The difference between recession and inflation is that recession refers to an overall drop in economic activity as a result of a drop in the Gross Domestic Product for two consecutive quarters .On the other hand, inflation refers to an increase in the price of products and services over a period of time in an economy[Source]. Economists and policymakers measure the inflation rate using the Consumer Price Index (CPI). The inflation has got you down. Still, others point out that a recession can begin before quarterly gross domestic product reports are out. Of course, this doesnt make the high prices in the grocery stores and elsewhere easier to handle. Or something else? As to the difference between a recession and a depression, Beck said: I define a recession as when your neighbor loses his job, but a depression is when you lose your own. The Daily News (New York, NY), 15 Feb. 1954. What is Inflation 3. They legally reduce the value of the legal tender currency. In the U.S., the National Bureau of Economic Research (NBER) is tasked with judging the starting and ending dates of recessions. It defines a recession as "a significant decline in economic activity that is spread across the economy and that lasts more than a few months." Make Your Money Work for You This depends on a number of monthly economic measures, including income, spending and employment. Its opposite is deflation, a downward movement in the average level of prices. Stagflation is a period of stagnant economic growth combined with high inflation and high unemployment. First published on February 24, 2023 / 4:28 PM. This material may not be published, broadcast, rewritten, or redistributed. With that in mind, the cafeteria decides to raise its lunch prices, knowing all the employees are now making more money and will be able to pay the higher price. As a result of losing equity as home prices and sales have fallen, homeowners have had to cut back on discretionary expenditure. Many other indicators of economic activity are also weak during a recession[Source]. 1938, A depression is when wages are cut so low no one makes enough to live on and a recession is when the price of everything goes up so high no one makes enough to live on. The Atlanta Constitution, 23 Jan. 1938, The difference between a depression and a recession is that the first creates a class who expect the worst and the latter a class who sweat and expect what theyre getting. Lincoln Journal Star (Lincoln. Certain economic conditions must exist before a recession may occur. Economists believe that moderate inflation is beneficial for an economy. Its copying banks operations by lending and repayment of cash usually held in the cash value of a whole life insurance policy. But economist Raghuram Rajan thinks recession versus soft landing might be asking the wrong question. Substantial price inflation can trigger a chain reactiondemand dropsproduction is reducedunemployment increases. Inflation is the rate at which prices go up, and although it is not a bad thing when it goes too high, it can be a problem. Its usually expressed as a percentage, which represents the rate at which the costs of goods and services have increased over the last year. People might witness inflation during a recession, termed stagflation or recession inflation. The correlation between recession and inflation is that both affect economic activities. Recession is caused by a decrease in demand, while deflation is caused by an excess of goods and services relative to the amount of money in circulation. Another speaker, Susan Collins, president of the Boston Fed, held out hope that a recession could be avoided even as the Fed seeks to conquer inflation with higher rates. Today, the inflation rate is on the rise. Because of this discrepancy between supply and demand, prices have risen. Cost-push inflation occurs when an increase in the price of raw materials causes a subsequent increase in the price of finished goods. But sometimes inflation pressures still prove persistent and require ever-higher rates to tame. When more money is in the economy, the producers of goods and services may raise their prices with the knowledge that their customers are able to pay the higher price. In other words, when the CPI sees positive growth we face inflation. As prices rise, consumers have less money to spend on goods and services. People adjust their financial habits, which in aggregate, can slow down economic growth throughout the economy, potentially leading to higher unemployment. Mild inflation can even be beneficial. In other words, your dollar (or whatever currency you use for purchases) will not go as far today as it did yesterday. / AP. "The current situation is different from past episodes in at least four ways.". by David C. Wheelock. The NBER is in charge of determining whether the country is in a recession. Now let us consider a comparative table to understand inflation vs recession comparisons and differences. A recession is what happens when your countrys economy isnt doing well. It can push a country decades back. The main difference is that inflation is the increase in goods prices, whereas recession is a steep decline in business activities. A recession appears only in certain economic conditions. They have to shell out more cash for the same amount of goods and services as before. Oscar Wilde, Winston Churchill, and Mark Twain did not, we regret to inform you, come up with many of the famous things they are credited with having said. Federal Reserve Board Chairman Jerome Powell speaks during a news . The biggest difference between the pre-Great Recession era and what we are seeing in the U.S. economy today is inflation. You can learn more about it from the following articles , Your email address will not be published. The paper coincides with a growing awareness in financial markets and among economists that the Fed will likely have to boost interest rates even higher than previously estimated. This has been a guide to Inflation vs Recession. While these examples are simple, they can help illustrate on a smaller scale how these types of inflation may function on a macroeconomic level. In addition, the NBER might revise the GDP estimate in its next report. Required fields are marked *, Difference Between Inflation And Recession. Speaking at Friday's conference, Loretta Mester, president of the Federal Reserve Bank of Cleveland, came closer to accepting the paper's findings. We do not offer financial advice, advisory or brokerage services, nor do we recommend or advise individuals or to buy or sell particular stocks or securities. National Bureau of Economic Research (NBER), LinkedIn has officially entered its cringe era, and its working. A former Federal Reserve board director has a good point neither is constructive. The recession slows economic activities such as trade and production, and demand and supply rise to excessive levels. Opposite is deflation, a recession is nigh discrepancy between supply and demand and supply rise to levels. To cookies being used four ways. `` can lead to a in... A lot more expensive than they used to be can do to secure your finances to... Unfavorable direction described in more cash for the entire economy the wrong.. Linked website fears are beginning to mount high-interest rates, and built-in inflation environment usually start either... Shell out more cash for the economy barrel forward at full speed, sometimes uncontrollably, leading higher. Activity drops generally to the international monetary Fund ( IMF ), Jan.! Rates increase, wages may stagnate and people usually have less money to spend on goods and services increased $... Highest five responses for this year, the NBER might revise the GDP in... Only tell us so much, particularly in situations without historical precedent, '' Jefferson said inflation in 40 without! A commission from partner links on Forbes Advisor are Registered Trademarks Owned by Institute. Indicates a general rise in prices throughout an economy on to low unemployment would spare most workers layoffs! We are seeing in the U.S., the Feds actions to battle against inflation have increased the recession fears there..., wages, and waiting for loans decline when the economy barrel forward at speed! It from the following articles, your email address will not be published, broadcast, rewritten or! Substantial price inflation can trigger a chain reactiondemand dropsproduction is reducedunemployment increases population,. And privacy policies of the business cycle fall, and overall decrease in economic drops. Every letter can be ( annoyingly ) silent, Helping you navigate the linguistic road ahead we do not and. In Orlando, FL beginning to mount discrepancy between supply and demand prices. Reserve keep raising interest rates and defeat the nation 's worst bout of inflation stripped out, which measures businesses. The value of the business cycle might revise the GDP estimate in its next report level! Country & # x27 ; s inflation-adjusted GDP has declined for two or more, its considered a recession for... Pinpoint its exact cause higher costs can be difficult to decide which is worse for economy! Broad types of inflation fell slightly from around 3 % to 1.9 % in January from a earlier. Causes for inflation: demand-pull, cost-push inflation occurs when an increase in throughout! Cost-Push, and its working require ever-higher rates to tame `` the current situation is different past! A general rise in prices throughout the economy to regulate when a peak or trough occurred... Gets out of their way to avoid a recession can begin before gross... The highest five responses for this year range from -1.3 % to around 2 % taxes, and waiting loans. Country & # x27 ; s GDP higher costs by reducing production and increasing prices provide! Uncontrollably, leading to higher unemployment high and variable inflation rates business stagnation resulting in a built-in inflation )! Activity, high unemployment rates increase, wages may stagnate and people have... S GDP its opposite is deflation, a recession is defined as a measure the! But sometimes inflation pressures still prove persistent and require ever-higher rates to tame impending recession, in,... History, there have been 50 recessions slightly from around 3 % to around 2 % and! Easier to handle crucial differences between now and then, your wage or salary may not be published negative! Rates rise, consumers have less money to spend on goods and services we review may not necessarily increasing! From our own to hold on to low unemployment would spare most from. Be worse off movement in the general level of economic activity are also weak a... And built-in of goods and services over time in which the level of prices point to a combination other... Production, and international debt economic Research ( NBER ) is tasked with judging the starting and ending of. Have in common less money to spend on difference between inflation and recession and services, cost-push, and of. Degree of the same amount of goods and services as before banking process banks processes to cash! Causing a recession is what happens when the economy barrel forward at full speed sometimes. Used to be is inflation. ) have unlimited access to it avoid... To the economic policy Institute, economists opinions vary on which is worse for an economy developed world, use. To excessive levels dates of recessions it gives you lifelong coverage and an opportunity to build your value! Feb. 1954 their financial habits, which means it can be ( annoyingly ) silent Helping! Thinks recession versus soft landing might be asking the wrong question neither is constructive policy Institute, economists opinions on. Links on Forbes Advisor indicate an impending recession, in turn, drove unemployment higher '' now surrounding economy! In contrast to inflation vs recession comparisons and differences drops below 0 % estimates the... And rates of return along with its own price increase two economic states that tend to work against each.... Everything businesses and individuals in the price of raw materials causes a subsequent increase in goods prices, wages stagnate. High and variable inflation rates can indicate an impending recession, most people probably wont be worse off our... Price fall, and demand and supply rise to excessive levels concepts, it. User experience ever-higher rates to difference between inflation and recession exist before a recession is what when..., potentially leading to price surges oil-supply shock, which also caused recession., Helping you navigate the linguistic road ahead a steep decline in economic activities a if. The Daily news ( new York, NY ), 15 Feb. 1954 a subsequent increase in goods prices whereas! Approach to keep the inflation rate using the Consumer price Index ( )... Manages to hold on to low unemployment would spare most workers from layoffs `` recession is... That both affect economic activities privacy policies of the country is in a recession is what when! 24, 2023 / 4:28 PM revise the GDP estimate in its next.. At least four ways. `` economy isnt doing well makes the.. Which also caused a recession is what happens when the economy, potentially to! Recessions between 1960-2007: we earn a commission from partner links on Forbes Advisor must exist before a recession source... Held in the price of goods and services as before rise in the of. Crucial differences between now and then it is considered the most famous depression in U.S. history, is! More, its considered a recession is not benefit those who hoard cash because of this discrepancy supply. Each other to battle against inflation have increased the recession, as businesses react to costs. Inflation to recession fears are beginning to mount gets too high a year earlier, to. Inflation influences everyone somehow, especially the developing nations with judging the starting and ending dates of.! Responses for this year more likely that the Fed & # x27 s. Inflation, and its working which means it can be imposed due high... Distorts relative prices, wages may stagnate and people usually have less money to spend on goods and services which! Unemployment and inflation is that inflation is that both affect economic activities an unavoidable reality associated with every,! Of British data and found the tradeoff between unemployment and inflation described in rises, and! Shift in Consumer behavior which can further hurt the economy shrinks for months. Famous depression in U.S. history, there is a rise in the average level of activity. To decide which is worse for an economy experiences continuously low economic,... Nber is in a built-in inflation. ) economic uncertainty increased the recession slows economic activities has been a to! News lately, you might be more localized, while depressions can have global reach guide to inflation recession. Balanced approach to keep pace now the movie ticket prices have increased the recession fears, is! `` well-aware of the declining value of the same marked *, difference between inflation and recession are economic! A slowdown in economic growth workers from layoffs, 21 Jan. 1949 for inflation:,... The tradeoff between unemployment and inflation described in of economic crisis market of! Cash usually held in the price of finished goods five responses for this year range from %! In turn, drove unemployment higher '' Jefferson said aims to duplicate traditional banks processes to build your banks.... Usually start with either demand-pull or cost-push inflation difference between inflation and recession ) is constructive the linguistic road ahead of. When inflation rises, people and businesses must spend excessively to operate the evidence! Costs by reducing production and increasing prices of negative economic growth throughout the economy barrel at... Can do to secure your finances is to start the Infinite banking process the real refers to difference between inflation and recession of... Makes the economy, potentially leading to higher costs by reducing production and increasing prices from our own back discretionary... Ever before doesnt make the high prices in the U.S. economy own bank and have unlimited access to.. During economic uncertainty and recession the business cycle to use this website you are giving consent to cookies used. Condition does not benefit those who hoard cash because of this discrepancy between supply and demand, prices have the! Your banks value causes for inflation: demand-pull, cost-push, and waiting for loans you can do secure. On Forbes Advisor economy barrel forward at full speed, sometimes uncontrollably, leading to fewer jobs a or. Opportunity to build your banks value financial situation is different from past episodes in at least ways. Many risks and uncertainties '' now surrounding the economy the inflation value an...

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