How do I get a handle on inflation?

[rogerbacon]

I thought my economy was doing well but I just checked and inflation is running at 13.9% What steps can I take to reduce it?

[dax1]

less social assistance

[rogerbacon]

less social assistance

Really? That's the best way? Not manipulating taxes or trade? Which social spending results in the quickest lowering of inflation?

[dax1]

if people have less money, they tend to buy less.
this decreases the growth of GDP so as to keep inflation down.

it's happen in my game

note:at the same time also in DAR come down ... you only have to balance everything

[GreenGoblin]

This begs the question, what's wrong with inflation? And in this game the answer is: nothing really. When considering finances inflation is something I always ignore as it seems to have negligible effects on the game.

Also FYI increasing social spending in this game has a massive effect on DAR and gdp/c, whereas lowering taxes has far less of an effect. Generally I find that if you want to improve the two parameters mentioned then raise social spending and also taxation if that is necessary to pay for it.

[Von Bismarck]

When considering finances inflation is something I always ignore as it seems to have negligible effects on the game.

+1, nicely stated

[PyongYang]

High inflation increases the price of raw materials doesn't it?

[Hullu Hevonen]

Don't overbuild, thats the main thing, inflation, especially very high inflation is can affect your production price of commodities to such an extent that it is no longer viable to sell it on the market. In the end it cost more to build that to import. A good warning for the risk of exploding your inflation is the labour shortage warning. If lowering social assistance actually helps then that's interesting.

[PyongYang]

Don't overbuild, thats the main thing, inflation, especially very high inflation is can affect your production price of commodities to such an extent that it is no longer viable to sell it on the market. In the end it cost more to build that to import. A good warning for the risk of exploding your inflation is the labour shortage warning. If lowering social assistance actually helps then that's interesting.

Spot on, that. In my current game as Spain, I'm letting it run waiting for improved power grid, and not building/expanding is seeing my inflation come down nicely, plus I'm making a tidy profit on the few commodities I'm selling, plus my unemployment is creeping up towards a healthy level for expansion later, as my population increases..