Also note that
measures of inflation generally assume that people are buying exactly the same products that they bought a year ago.
Not exact matches
Generally, you calculate the hurdle rate by adding together the risk - free interest rate, a
measure of inflation expectations over the life
of the project and a premium to compensate for the investment's risk.
Consumer price
inflation has slowed a little, from 2.2 per cent in late 2003 to 2.0 per cent over the year to April, and
measures of underlying
inflation are
generally also around 2 per cent.
The Consumer Price Index tracks the prices paid by urban consumers for goods and services and is
generally accepted as a
measure of price
inflation.
Looking back over the past 25 years, a period
of low and stable
inflation, stock / bond correlation has
generally moved in tandem with monetary policy, as
measured by the effective federal funds rate.
Inflation is,
generally, a
measure of decreased buying power.