Macroeconomics
Guyana -- Inflation Rate
Inflation rate is an important concern to assess the economic condition of any country. This report focuses on the inflation rate of the South American country, Guyana.
The economy of Guyana mainly depends upon the production of rice, sugar, shrimp, fresh fruits, vegetables and fish. The important industries of Guyana include mining of diamond, gold and bauxite, manufacturing of pharmaceuticals, footwear, clothing, beverage and foodstuff processing.
In Guyana, inflation rate is measured through consumer price index. It is normally used by the Government, international organizations and public members and trade unions to assess the ratio of increase in prices or inflation. Data is collected monthly however it is published quarterly.
Since consumer price index measures the changes in prices of the consumer goods and services i.e. fixed basket of goods but not include capital goods. There are 9 main categories of fixed basket of goods which includes commodities and services like Food, Clothing, Housing (electricity, fuel and water), Transport and communication, Education and Recreation services and medical services and so on. These 9 categories include 217 items. The prices of consumer goods and services are recorded at retail level that includes taxes as well.
Relative weights are assigned to each item of the basket of goods. These weights are assigned on the basis of percentage of expenditure. Like the food items are...
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