Economic Indicator Series Part 2 of 5 - Inflation: Concepts, Measurement & Price Indexes

This presentation is Part 2 of the 5-part Economic Indicators Series presented by Dr. Jason Dean, an economist who received a BBA from Wilfrid Laurier University, an MA in Economics from the University of Guelph and a PhD in Economics from McGill University, and who teaches macroeconomics, microeconomics, applied econometrics and labour economics.

It provides a practical framework for distinguishing inflation from relative price changes, disinflation and deflation, while explaining how weighted baskets, the Laspeyres and Paasche indexes, chain weighting and official CPI methodologies measure changes in prices and purchasing power. The presentation examines nominal and real values, different inflation measurement periods, demand-pull and supply-driven inflation, expectations, stagflation, hyperinflation, inflation targeting and the effects of inflation on wages, borrowing, contracts, business planning and policy decisions. Although it does not address a specific legal framework or case law, it equips legal and business professionals to interpret inflation data, evaluate economic claims and assess how changing prices and interest-rate expectations may affect clients, agreements, financing and broader financial risk.