Scribd
Upload
39 views11 pages

Project Presentation

Uploaded by

sudeepboreddy21
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PDF, TXT or read online on Scribd
39 views11 pages

Project Presentation

Uploaded by

sudeepboreddy21
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PDF, TXT or read online on Scribd
You are on page 1/ 11

INFLATION

Presented by Sudeep Boreddy X-B


Students Name :

Sudeep Boreddy
Project Title:

INFLATION Class:

Submitted to - Amruta Ma’am


10-B
(Teacher In Social Science)
Roll No:

6
INDEX
Sr Page
No. Topics No.

1 Intoduction 1

2 Causes of Inflation 2

3 Effects of Inflation 3

4 Types Of Inflation 4

5 Inflation Rate 5

6 Ways to control Inflation 6

7 Conclusion 7

8 Bibiliography 8
Introduction
Inflation is the rate of increase in prices over
a given period of time. Inflation is typically a
broad measure, such as the overall increase in
prices or the increase in the cost of living in a
country. It is an economic concept. It refers to
the rising prices of goods, commodities, and
services in a particular economy. With the
rising prices of goods and services, the
purchasing value of money will decrease. So
the purchasing power of the consumer will
also see a decline.
Causes of
Inflation
01 02 03 04
nflation can occur when Inflation measures the Some companies reap If inflation occurs too rapidly, it
prices rise due to increased rate of rising prices of the rewards of inflation can push prices for basic
production costs such as goods and services in if they can charge more necessities out of reach.
raw materials, labor costs, an economy. for their products due Inflation also erodes consumer
market disruptions, higher to the high demand for purchasing power, devalues
consumer demand, and their goods. currency, and can interfere
fiscal and monetary policies. with the ability to save.
3. Higher Prices For
Effects Of Everything
When everything is more expensive, the impacts are felt by

Inflation
everyone. After all, it’s impossible to go without the basics such
as food or electricity. But with rising costs, it can become more
difficult to make ends meet.

1. Lost Purchasing Power


Mind
4. Economic Growth Slows
The most obvious impact of inflation is the loss As inflation runs rampant, the Fed tightens its monetary policy.
of purchasing power. As purchasing power With the money supply drying up, credit becomes more expensive

map
and credit requirements tighten. The cost to borrow money is
erodes, many feel the impacts on their budget. intentionally increased with the hope that this will decrease
But those on a low income or fixed income consumer spending and slow inflation.
often feel the effect the most.

2. Higher Interest Rates 5. Anti-Inflationary


The average consumer takes advantage of borrowing to
make major purchases, like a home or vehicle, a reality. Measures Can Cause A
This means rising interest rates impact household
purchases across the country. If you have any debt with Recession
a variable interest rate, you’ll face higher costs as your
Inflation is a major threat to the economy. But as the Fed tries to
interest rates increase. adjust the market with monetary policy and interest rate hikes,
. sometimes it overcorrects.
Demand-Pull Effect Cost-Push Effect

Demand-pull inflation occurs Cost-push inflation is a result of the


when an increase in the supply of increase in prices working through
money and credit stimulates the the production process inputs.
overall demand for goods and When additions to the supply of
services to increase more rapidly money and credit are channeled into
than the economy’s production a commodity or other asset markets,

Types of
capacity. This increases demand costs for all kinds of intermediate
and leads to price rises. goods rise.

Built-In Inflation

Built-in inflation is related to


Inflation
adaptive expectations or the idea
that people expect current
inflation rates to continue in the
future. As the price of goods and
services rises, people may expect
a continuous rise in the future at a
similar rate.
5.5%
Inflation Rate Of India 2024
The inflation rate defines the percentage change in the price level for a
basket of goods and services in an economy over a certain period of time,
usually measured on an annual basis. It indicates how fast prices are
rising on average, leading to a reduction in the purchasing power of the
currency.
Monetary policy – Higher
interest rates reduce demand in

01. the economy, leading to lower


economic growth and lower
inflation.

Ways to Fiscal policy – a higher rate

control 02.
of income tax could reduce
spending, demand and
inflationary pressures.

Inflation Control of money supply –


Monetarists argue there is a

03. close link between the money


supply and inflation, therefore
controlling money supply can
control inflation.
Conclusion
High inflation rates have an adverse effect on the GDP,
decreasing the purchasing power of money and leading to
a drop in national output. However, moderate inflation
levels should not cause fear, as they are vital for the
steady growth of the national economy.

For instance, when high levels of inflation occur, the value


of one's money (also known as purchasing power) erodes,
as consumers are no longer able to buy as much product
with the same amount of money.
BIBILIOGRAPHY
https://en.wikipedia.org

https://www.rba.gov.au

https://www.investopedia.com

https://www.munich-business-school.de

https://www.imf.org

You might also like