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The expected rate of change in prices is known as the : - forecasted mean CPI...

The expected rate of change in prices is known as the :

- forecasted mean CPI

- Okun's law coefficient

- augmented inflation rate

- expected inflation rate

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Answer #1

The correct answer is last option (expected inflation rate).

Expected Inflation Rate is the expected rate of change in prices. Inflation is calculated by comparing the prices of various goods across different spans of time. Now, expected change is identified by Expected Inflation Rate. This involves keeping the records of past data and using them as a basis to predict the changes in future. Typically, this is performed by economists, bankers and policymakers to keep a check on inflation.

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