When they give monthly inflation figures, is that how much it’s gone up that month, or averaging across the year?

Question

Each month you’ll get an article headline like “Inflation at 3% in July” or whatever. Does that mean prices went up 3% in July, or does it mean across this year the average after July is 3%? I know prices are going up lots lately but if it’s 3% each month that’s 36% a year? Please explain to my silly little brain.

In: Economics

Answer 1

Very short answer, inflation figures are assumed to be annualized unless otherwise stated. So sometimes they have month to month changes but these would be less common. Inflation at 3% in July would very likely be 3% per year as measured in July.