4 ms·
This may be a stupid question, but how is any value above 100% possible?
by tnfru 4y ago
This may be a stupid question, but how is any value above 100% possible?
- deleted 4y ago[deleted]
- stefan_ 4y agoInflation is "measured" by tracking the price increase of some representative items like food staples or fuel. Prices of course are free to increase much more than 100%.
- marcosdumay 4y agoSome product basket costs $1 at the beginning of the year. At 100% inflation, at the end of the year it will cost $2. At 200%, it will cost $3, and so on.
- timerol 4y agoIf a banana goes from costing $10 to costing $26, that's a $16, or 160%, rise in price.
- larsnystrom 4y agoInflation is measured in price increases. So 100% inflation means the price increased by 100%, i.e. prices doubled.
- dageshi 4y agoIf something costs $1 yesterday but costs $2.50 today that is an increase of 150%. How inflation is tracked differs from country to country but typically it's based on looking at the prices for goods the average citizen might buy and tracking the price increases/decreases from year to year.
- FredPret 4y agoIt’s the increase per year. Prices can go up, say 5x in a year, which would be 500%. Sometimes inflation hits millions of percent.
- LudwigNagasena 4y agoThat would be 400%.
- FredPret 4y agoCorrect, yes, off by 1 (00%)
- mateo1 4y ago
- CydeWeys 4y agoYou may be confusing percentage increases (bounded by nothing) with percentage decreases (which are often bounded at 100%). Though even decreases aren't actually bounded either -- like when the price of crude oil turned negative at the start of COVID, that resulted in oil experiencing a >100% decrease in cost. At the end of the day it's all just multiplication, and you can multiply by any number.