1.inflation

2. What is inflation???
Inflationisthestatewhenthevalueofmoneyis fallingandthereisanupward rise inpricelevel.
Too much of money chasing, but very few goods.
For example, if the inflation rate is 5% for a particular item, it means that the demand is 5% more than the total supply of that particular item.
3. Types of inflation
Demand pullInflation .
Cost push inflation.
Pricing powerinflation.
Skewinflation .
4. Demand pull inflation
When demand grows faster than supply it pushes general pricesup. This can be described as too much moneychasing toofew goods.
India beingagrowingeconomy has experienced this type of Inflation for years. Almost all industriesin India face demand pull inflation especially when it comes to the technology driven industry like Automobile,Consumer Electronics.
5. 6. Cost push inflation
Cost-push inflationis atype of inflation caused by substantial increases in the cost of Important goods or serviceswhere no suitablealternative is available.
A situation that has been often cited ofthis was theoil crisis of the 1970s, which some economists see as a major cause of the inflation experienced in theWesternworldin that decade.
7. 8. Pricing power inflation
This type of inflation is caused by businesshouses whotend toincreasepricestoincrease their profitmargins. It is more common inoligopolisticeconomies.
skew inflation
This term has beencoinedobservingthe unusualinflationwherein therewas huge inflationin the food sector with the non-foodsectorremaining moreor less constant.
9. Factors affecting inflation
Increase in money supply.
Increase in exports.
Black money.(fake currency).
Increase in public expenditure
Decrease in theaggregate supplyof goods and services.
10. how is inflation measured??
A measure of price changes in consumer goods and services such as gasoline,food,clothing and automobiles. the CPI measures price change from the perspective of a consumer.
A family of indexes that measure the average change over time in selling prices by domestic producers of goods and services. PPI measures price change from the perspective of a seller
11. How to control inflation??
12. Problemsduetoinflation
When the balance between supply and demand
Goes out of control, consumers could change their buying habits, forcing manufacturers to cut down production.
Price increase can worsen the poverty affecting the low income household
Producers will not be able to control the cost of raw material and labor and hence the price of the final product, which results in less profit or in some cases no profit, forcing them out of business
Manufactures will not have an incentive to invest in new equipment and technology
13. How inflation is a threat to Indian economy
14.

Inflation has become a household name for millions of Indians who are finding it extremely difficult to make both ends meet. Prices are growing faster than the household income almost for all products and services including real estate, food, transportation, luxuries.

15. The global economic crisis saw many economies stumble but India rebounded faster and was surging ahead with a growth rate of 9%. But the inflationary pressure is forcing the government to adopt measures which are taking the steam out of the Indian growth story.