Objectives Of Consumer Inflation

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TRODUCTION inflation is a sustained and considerable increase in price of goods and services in a country which result in decrease of purchasing power of money. For inflation to occur they must be an increase in all or most goods and services of price in general.
Inflation is an economic measure, that tell us how well our economic. Objectives of price stability is achieved countries aim to have price levels as stable as possible in order make it possible for people to for the future. Increasing price reduce the buying power of people it will make people poorer and will create uncertainty about the future
MEASURING INFLATION
CONSUMER PRICE INDEX (CPI)
For the most widely used in inflation measure. the consumer price index ,is a measure of price of goods that influence the cost of living and is used to calculate consumer inflation. This is done by first finding what types of goods and services that consumer in the country purchase most this referred as basket of goods and services and how much of this these goods and services they purchase. Then after you determine how prices of these goods and services have changed over different areas of the country, in the different kinds of shops and rural areas. (mohr & fourie, 2008)
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