Hmmm inflation!

[OS,]

I just purchased my 2nd vb...., i noticed that the currency change went up! Inflations its called right? i noticed it went up by almost 10%!

for my last vb i paid £82 GBP that was last late summer and now its £91

[Colin F]

Actually, it's not directly inflation in this case.

The £ prices are calculated from the $ prices, so this change is due to the currency exchange rate changes between these two currencys.

[OS,]

i know that, thats what i did before it exchanged it from $160 = £82, but now $160 = £91

[Colin F]

Now you got me thinking...
Inflation is the decline of the purchasing power of money, but are exchange rates really in that equation?

Edit: This seems to be a currency devaluation of the £ against the $. The word inflation is used "within the national region of use".

[chrispadfield]

National inflation figures do take account of changes in exchange rates because changes in exchange rates affect the prices of imports and exports. That is where the term "importing inflation" comes from if your currency devalues and your imports get more expensive.

[OS,]

yes thats what i thought too, exchange rates are affected by inflation, and your quite right Colin that it is to do with devaluation also..., hmmm,

The £ was the best and the strongest in europe even after the euro € came into power the pound is still the strongest, and still beats the $, but it looks like things are getting hotter of the pound is going down againts the dollar.

I think i may of picked the wrong day, as i just did a check on http://www.xe.com and $160 USD = £88.52 GBP hmmm i guess its to do with the global economy and how things are changing constantly, the markets etc etc

[Scott MacVicar]

xe.com lists ideal exchange rates, very few people actually get whats stated since a middle man always takes a cut for changing the currency.