International Accounting
The inflation rate is the percentage increase in the price level of goods and services in an economy over a specific period, usually measured annually. Understanding inflation is crucial because it affects purchasing power, investment decisions, and economic stability. It plays a significant role in financial analyses across different countries, as varying inflation rates can impact comparative performance metrics. Additionally, assessing country risk involves examining inflation rates since high inflation can signal instability and affect the attractiveness of investments in emerging markets.
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