Inflation Accounting: The rate at which the general level of prices for goods and services is rising.
Inflation Risk: Investments designed to hedge against inflation and the loss of purchasing power associated with it.
Inflation Uncertainty: Also called purchasing power risk, the risk that changes in the real return the investor will realize after adjusting for inflation will be negative.
Inflation-Adjusted Return: Inflation-adjusted return is what you earn on an investment after accounting for the impact of inflation. For example, if you earn 7% on a bond during a period when the inflation rate averag . . . View Full Definition
Inflation-Escalator Clause: The fact that future inflation rates are not known. It is a possible contributing factor to the makeup of the term structure of interest rates.
Inflation Rate: The inflation rate is a measure of changing prices, typically calculated on a month-to-month and year-to-year basis and expressed as a percentage. For example, each month the Bureau of Labor . . . View Full Definition
Inflation Hedge: Accounting practices allowing for the effects of inflation.
Generally Accepted Accounting Principals (GAAP): The sum of taxes, charges, and miscellaneous income taken in at the state and local level while neglecting overlapping revenue which may be erroneously counted twice.
Generally Accepted Accounting Principles (GAAP): Authoritative guidelines that define accounting practice at a particular time.
Inflation: Inflation is a persistent increase in prices, often triggered when demand for goods is greater than the available supply or when unemployment is low and workers can command higher salaries. . . . View Full Definition