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Inflation
Inflation
Inflation
Inflation
Inflation
Inflation
Inflation
Inflation
Inflation
Inflation
Inflation
Inflation
Inflation
Inflation
Inflation
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Inflation

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  • 1. Inflation??? Causes of Inflation Effects of Inflation Kinds of Inflation Demand pull Inflation Cost push Inflation Map showing Inflation rates around the world Report on Food Inflation
  • 2. Inflation is a rise in the general level of prices of goods and services in an economy over a period of time. When the general price level rises, each unit of currency buys fewer goods and services. Consequently, inflation also reflects an erosion in the purchasing power of money – a loss of real value in the internal medium of exchange and unit of account in the economy.
  • 3. Causes of Inflation  Increases in money supply  Expansion of bank credit  Deficit financing  Black money  Artificial Scarcity  Population growth
  • 4. Effect of Inflation  Debtors and creditors  People with fixed income  Consumers  Producers and businessman  Farmers  Tax payers and government
  • 5. Kindsof Inflation  Demand pull inflation is asserted to arise when aggregate demand in an economy outpaces aggregate supply.  Cost push inflation is a type of inflation caused by substantial increases in the cost of important goods or services where no suitable alternative is available.
  • 6. Demand pullInflation Demand pull inflation may be due to Increase in money supply Increase in government purchases Increase in exports
  • 7. Cost push inflation Cost push inflation may arise because of  Increase in money wage rates  Increase in money prices of raw materials.
  • 8. CANADA ALASKA GREENLAND USA BRAZIL UGANDA AUSTRALIA CHINA RUSSIA MONGOLIA Inflation rates around the world in 2009
  • 9. Population 4 billion (60%) GDP US$24.077 trillion (2008) GDP (Currency) $16.774 trillion (2009) GDP/capita $7,041 (2009) GDP/capita $4,629 (2009) Annual growth of per capita GDP: 7.9% (2010) Millionaires (US$): 3 million (0.06%) Unemployment: 3.8% (2010 est.) *Most numbers are from the IMF. All GDP figures are in US$. Economyof Asia During2008-10
  • 10. Report on food Inflation Consumer food inflation (CPI-Food) has remained benign since late 2009, reflecting the declines in wholesale food prices during 2008-09, as well as weaker economic conditions. The CPI-Food rose by a modest 0.2% during March 2010, the first increase in the food inflation since August 2009. While inflation is currently absent, consumer food prices are forecast to rise by 4.5% (vs. year ago) by the end of 2010 – the third highest rate posted in the past 20 years. This compares to a decline of 0.5% during 2009, and gains of 4.9% and 5.9% registered during 2007 and 2008, respectively. The gain in consumer food prices is expected to be driven by higher costs of wholesale and underlying commodity inputs, most notably protein, dairy and soft commodity prices. However, it is also important to recognize the important role that economic conditions played in driving consumer food prices – both in pressuring food prices lower during 2009 and likely supporting higher rates of food inflation during 2010.
  • 11. Made By: Anant Agarwal XI-D Roll No. 4

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