For ordinary people understanding the economic development of the country is not an easy thing to deal with. Ordinary citizens also do not care at all to comprehend about the finances of the nations unless when for some reasons they are affected by it. This is a fact for many nations in different parts of the globe. Whether we like it or not only those who are engaged in financial matter also care to know about matters relative to inflation rate. The ordinary farmers or vendors in the far flung area do not care to know about this thing. But for some reasons people in the busy streets of a city tend to be cautious with the information they will get pertinent with inflation rate. It would also help to know some of the factors affecting this matter which is among the essential components of economy. Here are some factors affecting inflation rate:
- Dollar remittances – for the inflation rate of a country to rise, the dollar remittances is an essential factor. This is true to many places around the world especially the third world countries where many or their citizens are working outside their country. Whether we like it or not the strength of the dollar compared to a local currency is one huge factor affecting inflation rate.
- Prices of petroleum products – this is also another key player when we talk about inflation rate. The production of petroleum products in oil-producing countries also affects inflation rate to some extent.
- Global issues – yes, this issues involving security and peace and order of key nations definitely has a huge impact also on inflation rate. You might have noticed how a country’s peace and order situation affected its inflation rate. Thus, global issues truly do affect this thing. People who are aware of current global issues also noticed how it affected the world economy.