Inflation is a sustained increase in the aggregate or general price level in an economy that is an increase in the cost of living. The Inflation (or deflation) in the project cost is usually expressed as the annualised percentage rate of change in the construction cost indices.
Related Definitions in the Project: The Project Cost; The Economic Reviews
Example Article of the Inflation:
The Correlation Between Oil Prices And Inflation Isn’t Straightforward (Source: Oil Price on 12 February 2023): By Alex Kimani - For decades, the conventional wisdom in macroeconomics has been that high oil and gas prices are frequently the leading cause of high inflation. In fact, many analysts have blamed the two major oil price shocks of the 1970s for high inflation during the decade. The argument has been that oil prices and inflation are connected in a cause-and-effect relationship, therefore, as oil prices climb, inflation tends to follow in the same direction higher and vice-versa. This is supposedly the case because oil is a major input in the economy, and if input costs rise, so should the cost of end products. But a new study has found that high gas prices have a much lower impact on U.S. core inflation than earlier assumed. A deep dive into the latest wave of high inflation in the United States reveals that the relationship between high energy prices and inflation is hardly straightforward nor is it supported by available data. ...
