Agflation
Encyclopedia
Agflation, a term coined in the late first decade of the 21st century, describes generalised inflation
Inflation
In economics, inflation is a rise in the general level of prices of goods and services in an economy over a period of time.When the general price level rises, each unit of currency buys fewer goods and services. Consequently, inflation also reflects an erosion in the purchasing power of money – a...

 led by rises in Agricultural commodity
Commodity
In economics, a commodity is the generic term for any marketable item produced to satisfy wants or needs. Economic commodities comprise goods and services....

 prices. In the United States
United States
The United States of America is a federal constitutional republic comprising fifty states and a federal district...

, agricultural prices are not generally factored into core inflation
Core inflation
Core inflation is a measure of inflation which excludes certain items that face volatile price movements, notably food and energy.The preferred measure by the Federal Reserve of core inflation in the United States is the core Personal consumption expenditures price index...

 figures. The term describes a situation in which "external" (i.e. Agricultural) price rises drive up core inflation rates.

It has been claimed that the term was invented by analysts at Merrill Lynch
Merrill Lynch
Merrill Lynch is the wealth management division of Bank of America. With over 15,000 financial advisors and $2.2 trillion in client assets it is the world's largest brokerage. Formerly known as Merrill Lynch & Co., Inc., prior to 2009 the firm was publicly owned and traded on the New York...

 in early 2007.

See also

  • 2007-2008 world food price rises
  • Biflation
    Biflation
    Biflation is a state of the economy where the processes of inflation and deflation occur simultaneously. The term was first introduced by Dr. F. Osborne Brown, a Senior Financial Analyst for the Phoenix Investment Group...

  • De-growth
    De-growth
    Degrowth is a political, economic, and social movement based on environmentalist, anti-consumerist and anti-capitalist ideas...

  • Inflation
    Inflation
    In economics, inflation is a rise in the general level of prices of goods and services in an economy over a period of time.When the general price level rises, each unit of currency buys fewer goods and services. Consequently, inflation also reflects an erosion in the purchasing power of money – a...

  • Hyperinflation
    Hyperinflation
    In economics, hyperinflation is inflation that is very high or out of control. While the real values of the specific economic items generally stay the same in terms of relatively stable foreign currencies, in hyperinflationary conditions the general price level within a specific economy increases...

  • Deflation
  • Biofuels
  • Stagflation
    Stagflation
    In economics, stagflation is a situation in which the inflation rate is high and the economic growth rate slows down and unemployment remains steadily high...


External links

The source of this article is wikipedia, the free encyclopedia.  The text of this article is licensed under the GFDL.
 
x
OK