Light affects the economy follows. Rising rates lead to lower economic growth, as the number of issued consumer loans is significantly reduced, and the savings of citizens opposite - increasing.
The trend of rising interest rates, usually portends a significant inflow of capital into the economy of the state and the strengthening of the national currency in the medium term. However, the situation is favorable only if against the background of real economic growth. Otherwise, it is fraught with stagnation and negative developments in the long term.
The extent to which a range of three-month interest rates on the financial markets is high. Indicator is published quarterly, usually on the third Thursday of the month trailing period.
The consumer price index is a great tool to track the rate of inflation, as it is CPI determines the dynamics of changes in retail prices of basic goods and services, which accepted to:
• food;
• The cost of health care and paying for education;
• clothing and footwear;
• transportation costs;
• Utility bill payments;
• the costs of vacation and entertainment.
The composition of the consumer basket is formed, based on a detailed statistical studies, and reflects the most typical of American citizens a set of goods consumed.
In addition CPI is used to calculate cost of living, which is essential to the development of the state budget and the planning of various grant programs. Make serious conclusions on the basis of this indicator is recommended not including food and energy components, as these items are subject to change most strongly. Analysis is recommended, along with an indicator of the level of producer prices. The growth of both of these indicators suggest the strengthening of the dollar and increase the level of investment attractiveness of the state.