Various definitions have been forward to extensively define what inflation is. Inflation is always expressed as a rate of price change per year or per month. For instance the rate of inflation on January I" 2008 is expressed as a percentage -5 percent, 9 percent or 3 percent. Inflation is a process of price change. A monthly inflation is calculated by the bureau of labor statistics. If January of 2008 the rate of inflation is announced to be Y, percent an approximate yearly percent can be calculated by multiplying the January rate by 12. inflation can also be defined as the rate of upward movement in the price levels for an aggregate of goods and services. It occurs when the prices on average are increasing over the year. Kenya faced a raoid inflationary rate during the 2007 oost election violence that had direct effects on the general performance of multinational corporations. A muitinational corooration is a firm that ooerates in more than t o countries. Inflation in iarge has effects on the develooment. establishment and general performance of multinational coroorations. Besides other factors that affects the ooeration of mnc' s like interest rates. ievei of consumotion. comnetition. fiscai and monetary nolicies int1ations the maior one.
